Incomplete paperwork? Discover our Alt Doc home loan options
If you’re a self-employed borrower 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 low doc home loans, why it’s no longer available and how Pepper Money's Alt Doc loan option could 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.
Our flexible approach to Alt Doc loans could help...
Self-employed workers
People without full documentation required by mainstream lenders
Small business owners looking to refinance
Why Pepper Money?
We're fast: Home loan approval within 2 business days (if eligible)
We're flexible: Multiple loan options, if we can help, we will
We're accessible: We’re here to talk through your situation
What you need to know about our Alt Doc loan applications
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
Whatever stage of the home loan journey you’re at, we could help
Talk to a real person about my options
If you’d like to have a chat about your home loan options – simply enquire online and we’ll aim to get in touch within 1 business day.
Get my indicative interest rate
In less than 5 minutes, find out your indicative interest rate and estimated repayments˅ – without impacting your credit score.
Calculate my borrowing power
Work out how much you may be able to borrow with us. We’ll look at your income and expenses to work out your rough borrowing estimate.
Whatever stage of the home loan journey you’re at, we’re here to help
Choose a home loan interest rate option that works for you
Home loan calculators
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
Stamp Duty
Mortgage Repayments
Savings Goals
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 our 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:
- Evidence of ABN registration for 6 months
- Evidence of GST registration for 6 months
- Declaration of financial position, and one of the following:
- 6 months' business bank statements (inclusive of the last 1 month) or
- 6 months' business activity statements (BAS) or
- Pepper Money accountant's letter (Accountant's letter not accepted if ABN registered for < 12 months)
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, you’ll need to provide the following (depending on where the funds originated from):
- 3 months’ bank statements demonstrating genuine savings
- Share certificate or dividend statement for any public listed company
- Gift letters for non-repayable gifts from family
- Contract of sale or settlement statement for proceeds of a sale of another property
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 - to confirm your last 3 months of 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, or 6 months’ BAS or Pepper Money accountant’s letter (not accepted if ABN registered for < 12 months, on loan sizes > $1.5m or on Plus).
Over 2 years:
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 – from application to actual settlement – 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 most commonly caused by incorrect or missing documentation.
Learn more about the 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 way back in 2000 to help Australians achieve their financial dreams by providing flexible financial loan options that could 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.
Resources about low doc and alt doc home loans
Our resources are here to guide you through the process and lend a little helping hand to get your home loan journey started.
Our Product Reviews
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The important legal bits
Information and interest rates are correct as of 27 August 2024 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. - 11.89% p.a. (Comparison rates range from 7.02% p.a. - 12.34% p.a.^)
Pepper Money 2-year fixed interest rates range from 6.59% p.a. - 11.64% p.a. (Comparison rates range from 6.97% p.a. - 12.20% p.a.^).
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 is not a formal approval for a loan and financial commitments must not be entered into based on it. It is not a suggestion or recommendation of any particular loan product. It is a guide only based on the limited information provided and the credit score obtained. The actual interest rate and fees will depend on the borrower’s circumstances and the information verified during the loan application assessment.
~The results of the home loan repayment calculator are based on information you have provided in the calculator including a selected interest rate, loan term and loan amount and is to be used as a guide only. The interest rates do not reflect true interest rates and the formula used for the purpose of calculating estimated home loan repayments is based on the assumption that interest rates remain constant for the chosen loan term. The output of the calculator is subject to the assumptions in the calculator (see 'about this calculator') and subject to change. It does not constitute a quote, pre-qualification, approval for credit or an offer for credit and you should not enter commitments based on it. Your interest rate, repayments and interest payable will be different when you complete a full application and we capture all details relevant to our responsible lending assessment. The results of this calculator does not take into account loan setup or establishment or monthly administration fees nor government, statutory or lenders fees, which may be applicable from time to time. Calculator by Widget Works.
+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).
