Low doc home loans: A 2025 guide for the self-employed

Finding it tough to get a home loan when you're self-employed? You’re not alone. Many Aussies running their own businesses or freelancing find the traditional lending process tricky – and that’s where low doc home loans come in.

Whether you're a sole trader, contractor, or small business owner, this guide breaks down how low doc loans work, what you’ll need, and how to boost your chances of approval in today’s market.

A low doc (low documentation) home loan is designed for people who can’t provide the standard proof of income, like regular payslips. Instead, lenders assess your financial situation through other documents — think BAS statements, accountant letters, and bank records.

Low doc home loans are typically suited for:

• Sole traders
• Freelancers
• Contractors
• Small business owners
• Investors with irregular income streams

If you’ve been knocking back your taxable income to minimise tax but still have healthy cash flow, a low doc option could be your golden ticket.

While you don’t need the full suite of documents, lenders still want to know you can afford the repayments. You might need:

• Business Activity Statements (BAS) – often 12 months’ worth
• Accountant’s declaration verifying your income
• Business bank statements – last 6-12 months
• GST registration – if applicable
• ABN registered for 6-24 months minimum, depending on the lender

Low doc loans often come with:

• Higher interest rates than full doc loans
• Lower Loan-to-Value ratios (LVRs) – you might need a 20% deposit or more
• Lender’s Mortgage Insurance (LMI) – possibly required if borrowing more than 60-70% of the property’s value
• Stricter lending criteria – especially in 2025, with tighter credit rules post-pandemic and market corrections

Want to stack the odds in your favour? Here’s how:

• Keep clean financial records – even if you’re applying ‘low doc’
• Save a solid deposit – aim for 20%+
• Reduce business and personal debts before applying
• Improve your credit score – lenders will still check it
• Work with a broker who knows self-employed lending inside out

Yes – and no.

While lenders are definitely more cautious with riskier loans in 2025, the good news is specialist lenders and non-bank lenders are stepping up.

Mainstream banks might say no, but niche lenders could still say yes – especially if your business is thriving, and you’ve got a good deposit ready.

Mortgage brokers are also a good option to consider as they have access to a wide variety of lenders and can help to find a lender that's suitable to your situation.