Low-doc home loans, also known as lite-doc or alt-doc loans, are lending solutions for self-employed borrowers. These can be useful for contractors, freelancers and other people who have no regular jobs and cannot prove their income through traditional means such as providing payslips.
Until low doc loans came along, home ownership for the self-employed was a difficult proposition. A person working for him or herself has no PAYG payslips records, often has a fluctuating income and perhaps their business activity statement (BAS) doesn’t look as solid as a bank would want.