Low doc lending is designed for borrowers who cannot meet traditional documentation requirements but still have the capacity to service a loan.
Instead of relying on tax returns and financial statements, lenders assess income using alternative methods. This may include reviewing business activity statements, analysing bank statement cash flow, or relying on an accountant’s declaration.
This type of lending is commonly used by self employed borrowers whose taxable income may not reflect their actual earnings, or where financials are not yet finalised.
Lenders take a different approach when assessing low doc applications.
They will focus on the overall strength of the borrower, including:
Because there is less traditional documentation, lenders often apply more conservative loan to value ratios and may price risk differently. However, strong applications are still very achievable when positioned correctly.
Low doc lending is often used when:
In these cases, waiting for full financials may delay opportunities. Low doc lending provides a way to move forward based on current business performance.
Low doc lending varies significantly between lenders. Some are more flexible with documentation, while others are stricter in how income is assessed.
We assess your situation upfront and identify lenders that are aligned with your business structure and income profile. We also ensure the application is presented clearly, so the lender can understand the full picture rather than relying on limited documentation.
If you’re self employed and unsure how your income will be assessed, speak with Peter Marcs Finance and explore low doc lending options that fit your situation.
