Low-Doc Home Loans — Rates, Requirements & When They Make Sense

A low-doc home loan is designed for borrowers who can't provide the standard financial evidence required for a full-doc loan — typically two years of tax returns. Most commonly used by self-employed borrowers, freelancers, and contractors.

Are low-doc home loans still available in 2026?

Yes, though the market has contracted since ASIC's responsible lending reforms. Several non-bank lenders and some banks still offer low-doc products.

Can I refinance from low-doc to full-doc later?

Yes — once you have 2 years of tax returns and financials, you can refinance to a standard full-doc loan at competitive rates. Allow for refinancing costs of $1,000–$3,000.

Do I pay LMI on a low-doc loan?

LMI is generally not available for low-doc loans. This is why most low-doc lenders require a minimum 20% deposit (80% LVR).

What interest rates do low-doc loans have?

In April 2026, low-doc rates typically range from 7.0% to 8.5% for variable loans, compared to 6.0%–7.0% for standard variable full-doc loans.