Self employed person considering Alt Doc loan
 Self employed person considering Alt Doc loan

Low Doc/Alt Doc shouldn't lock you out of a home loan

Check your borrowing power, get a rate estimate or even apply online in just a few easy steps.

Incomplete paperwork? We can still make it work

If you’re self-employed or a small business owner and don’t have the required documents for a standard home loan application, then you may have heard about low doc home loans and options that require minimal paperwork. Let’s explore the history behind this product, why it’s no longer available and a new solution that may help.

What is a Low Doc home loan?

The term low documentation (or Low Doc) home loan can mean something different depending on the lender you’re dealing with. This term was commonly used before the 2008 Global Financial Crisis (GFC) to refer to a mortgage that required less information than a ‘standard’ home loan to demonstrate the applicant’s ability to repay the loan.

After the GFC, the National Consumer Credit Protection legislation was introduced and identified that Low Doc Loans didn’t meet these lending requirements and was therefore no longer offered to consumers.

What is an Alt Doc Home Loan?

Alternative documentation home loans still require supporting documentation and go through our full credit assessment criteria, however the documentation we ask for caters to a wider variety of financial circumstances and complies with today’s lending standards.

Alt Doc loans are a solution for Australia’s army of self-employed workers who may not tick the usual loan application boxes or might not have the extensive ABN history and paperwork required by some mainstream lenders.  

Alt Doc loans could help...

Self-employed workers

Self-employed workers

People without full documentation required by mainstream lenders

People without full documentation required by mainstream lenders

Small business owners looking to refinance

Small business owners looking to refinance

Why Pepper Money?

We're fast: Credit decisions within 2 business days

We're flexible: Multiple loan options, if we can help, we will 

We're accessible: We’re here to talk through your situation 

 

Low doc home loan trio

What you need to know about our Alt Doc loan applications

Alt Doc does not mean less thorough. We always complete a comprehensive assessment of each alternative documentation home loan application, carrying out as much due diligence as when we assess Full Doc loans. Each application must satisfy our credit assessment, and, importantly, it must genuinely meet your needs.

Just like any other big financial decision, make sure you do your research and familiarise yourself with the terms, conditions, fees and charges of the Alt Doc home loan you are considering, to make sure it meets your needs. 

See what your repayments might look like

This repayment calculator gives you an estimate of what your home loan repayments could be, based on information you have provided in the calculator. The calculator does not take into account loan establishment or application fees, nor government statutory or lender fees.  It is to be used as a guide only and does not constitute a quote, pre-qualification, approval for credit or an offer for credit and you should not enter commitments based on it.

Ready to take the next step?

In less than five minutes, find out what indicative interest rate you might be eligible for.

Interest options to suit you

Variable Rates

Variable interest rate home loans start from

6.84% p.a.  variable rate*

7.02% p.a. comparison rate^

Go with the flow with our variable rate option. Maximise your cashflow with our 100% interest offset sub-account, complete with debit card access.

  • VISA debit card+
  • 100% interest offset sub-account
  • Free online redraw

Fixed Rates

2 year fixed interest rate home loans start from

7.54% p.a.  2 year fixed rate*

7.16% p.a. comparison rate^

Manage your money with our fixed rate loan option – choose a fixed-rate term that suits you. Plus, benefit from no break costs!

  • 2, 3, 5, 7 and 10-year loan terms
  • No break costs or early repayment fees
  • Unlimited extra repayments

Let's crunch those numbers

Our calculators are here to help you along your journey. From working out stamp duty to helping reach those savings targets. 

Borrowing power calculator

Borrowing Power

Work out how much you may be able to borrow with us, based on your income and expenses. 
Stamp duty calculator

Stamp Duty

Work out how much stamp duty you may need to pay in each state or territory across Australia.
Mortgage repayment calculator

Mortgage Repayments

Work out your mortgage repayments and interest payable over the life of the loan.
Savings and term deposit calculator

Savings Goals

Find out how much you could save with a savings account or term deposit.

What other alt-doc home buyers are asking

Here's what other savvy home buyers are frequently asking us. If you're still stuck for help, then why not check out all of home loan FAQs.

What documents do I need for an Alt Doc home loan?

We consider a range of financial documentation for our Alt Doc home loans:

  • 6 months of ABN registration and 6 months of GST registration
  • Declaration of financial position, and one of the following:
    • 6 months' business bank statements
    • 6 months BAS
    • Accountant's letter  

What credit history do I need for an Alt Doc loan?

We may be able to help, even if you have:

  • Defaults or judgements from 1 credit event within the past 12 months
  • Mortgage and non-mortgage arrears within the past 6 months
  • Recently been discharged from bankruptcy
  • Non genuine savings 

To apply for a home loan, you’ll need to provide documents to verify your identity, employment, and financial position. 

To prove your identity:

  • Australian passport

or

  • International passport showing a valid Australian permanent residency visa

To prove your deposit:

  • 3 months banks statements showing a savings balance 

  • Recent share trading statement, showing current value

To prove your income:

For PAYG applicants you’ll need two recent payslips plus one of the following: 

• Most recent group certificate  
• Most recent notice of assessment  
• Current letter of employment 
• Bank statements - showing last 3 months’ salary 

For Self-Employed applicants, the required documents vary depending on how long you’ve been self-employed.

At least 6 months:

You’ll need to be able to show at least 6 months of GST and ABN registration and provide declaration of financial position, as well as one of the following: 6 months business bank statements, 6 months BAS-Pepper Money accountant’s letter (not accepted if ABN registered for < 12 months, on loan sizes > $1.5m or on Plus).

Over a year:

Last 2 years tax returns and notices of assessments, or

Last 2 years financial statements executed by a registered tax agent or accountant

 

Different lenders charge different upfront and ongoing monthly fees, which should be factored in when saving your deposit. Some of these can be added to your loan balance, while others will need to be paid upfront – fees include establishments or application fees, and risk or mortgage insurance fees. Other smaller fees will be added to your balance each month.

You can view a summary of our home loan fees.

You’ll also need to pay solicitor fees along with local and state government taxes and levies. These can’t be added to your house loan balance and are usually paid upon settlement.

The interest rates for home loans tend to vary for each individual, depending on a range of factors: 

  • The amount you need to borrow against the property value; known as the Loan-to-Value Ratio (LVR) 
  • The size of your deposit  
  • Your income 
  • Credit history 
  • Any assets you own 
  • Any liabilities or credit obligations
  • Chosen repayment type – paying off interest-only, or principal and interest 
  • The purpose of the loan – if it’s for an owner-occupier or investment property

You can find out what interest rate you might be eligible for in under five minutes using our home loan interest rate calculator. It’s quick, easy and won’t impact your credit score.

Your Pepper Money Home Loan Journey can take up to six weeks – this is the typical timeframe for a home purchase, however the process may be quicker if all the necessary documentation is provided sooner. 

Delays in decisions are often caused by incorrect or missing documentation. 

Learn more about Pepper Money Home Loan application process or for more information speak to a Lending Specialist on 137 377.

This is a calculation based on your total income, expenses, current credit exposure and your credit history. You can estimate your borrowing capacity in under 5 minutes using our home loan calculator - it’s quick, easy and won’t impact your credit score.

We’re one of Australia's leading non-bank lenders! 

We were established in 2000 to help Australians achieve their financial dreams through providing flexible financial solutions that factor in the ups and downs of real life. Since then, we’ve become one of the largest, most trusted, and award-winning non-bank lenders in Australia and New Zealand. 

The important legal bits

Information and interest rates are correct as of 16 November 2023 and subject to change at any time. 

Information provided is factual information only, and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licenced financial or tax adviser.

All applications are subject to credit assessment, eligibility criteria and lending limits. Terms, conditions, fees and charges apply.

*Our interest rates:

       Pepper Money variable interest rates range from 6.84%p.a. - 12.19% p.a. (Comparison rates range from 7.02%p.a. - 12.34%p.a.^)

        View all variable rates »

       Pepper Money 2 year fixed interest rates range from 7.54%p.a. - 12.89%p.a (Comparison rates range from 7.16%p.a. - 12.45%p.a.^). 

       View all fixed rates »

      The actual interest rate will depend on the borrower’s circumstances and the information verified during the loan application assessment.

^Comparison rate is calculated on a secured loan of $150,000 for a term of 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

˅An indicative interest rate and estimated repayments are not a formal approval for a loan, so don’t enter any financial commitments based on it. They are a guide only, based on the basic information you provide and the credit score we obtain for the primary application and is not a suggestion or recommendation of any loan product.

+Visa Debit card is issued by Indue Limited ABN 97 087 822 464 and distributed by Pepper Finance Corporation Limited ACN 094 317 647 and/or through Pepper Money accredited mortgage brokers. Refer to the Conditions of Use and Target Market Determination (TMD).

Get in touch with a Lending Specialist

Tell us about your situation. The more we learn, the better we can help.