Best Low Doc Lenders In Australia (Top 5 Options In 2025)

Feeling overwhelmed by the multitude of low doc lenders in Australia?

Like many Australians seeking finance without the usual paperwork, you might be wondering where to turn.

In 2025, the low doc loan landscape is evolving, and finding the right lender can make all the difference.

But don’t fret—we’re here to help.

We’ve narrowed down the top 5 low doc lenders in Australia to make your search a whole lot easier.

Let’s dive in and see which one might be the perfect fit for you.

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What Is a Low Doc Loan?

A low doc loan is a type of loan that requires less documentation than traditional loans. Instead of providing detailed financial statements or tax returns, borrowers can submit alternative forms of income verification, such as a signed income declaration or proof of business activity. These loans are particularly popular among self-employed individuals and those with irregular income.

The primary purpose of low doc loans is to provide financial access to those who may struggle to meet the stringent documentation requirements of standard loans. While they offer flexibility, they often come with higher interest rates and stricter loan-to-value ratio (LVR) limits to offset the increased risk for lenders.

Understanding Low Doc Loans: Features and Terms

Low doc loans are designed with flexibility in mind, but they come with unique features and terms that borrowers should understand.

One of the key features is the simplified income verification process, which allows borrowers to use alternative documentation like an Australian Business Number (ABN) or Goods and Services Tax (GST) registration.

However, this flexibility comes at a cost. Interest rates for low doc loans are generally higher than those for traditional loans, reflecting the increased risk for lenders. Loan-to-value ratios (LVRs) are also typically capped at 60-80%, meaning borrowers may need a larger deposit or more equity in their property.

Repayment options for low doc loans can be tailored to suit individual needs, with both fixed and variable rate options available. This flexibility makes them an attractive choice for borrowers with unique financial circumstances.

Types of Low Doc Loans

Low doc loans can be broadly categorised into residential and commercial loans. Residential low doc loans are designed for personal property purchases, while commercial low doc loans cater to business needs, such as purchasing commercial property or funding business operations.

The terms and conditions of these loans can vary significantly based on the borrower’s risk profile and the type of loan. For instance, a residential low doc loan may have a lower interest rate than a commercial one due to the differing levels of risk involved.

There are also niche low doc products tailored for specific financial situations. These include loans for property investors, those consolidating debt, or borrowers with credit impairments. These specialised products offer additional flexibility but may come with higher costs.

Top 5 Low Doc Lenders in Australia

RedZed Lending Solutions

RedZed Lending Solutions is a standout in the low doc loan market, specialising in products for self-employed borrowers. They offer customisable loan structures that can be tailored to meet individual needs, making them a popular choice for those with unique financial circumstances.

RedZed is known for its strong customer service and positive client reviews. Their niche products, such as loans for borrowers with credit impairments or irregular income, set them apart from competitors. This focus on flexibility and personalisation makes them a top choice for many Australians.

Liberty Financial

Liberty Financial is another leading provider of low doc loans, offering a wide range of products for both residential and commercial purposes. They cater to a diverse clientele, including startup businesses and established enterprises, with tailored options to suit different needs.

Liberty is renowned for its innovative approach to assessing non-traditional income sources. Their competitive interest rates and flexible loan terms make them an attractive option for borrowers seeking a lender that understands the challenges of non-standard income.

Commonwealth Bank

Commonwealth Bank has streamlined its application process for low doc loans, making it easier for borrowers to apply. They offer a variety of loan options to meet both personal and business needs, backed by extensive support services.

Borrowers can benefit from tools like loan management platforms and financial advice, which help simplify the borrowing process. Commonwealth Bank’s focus on building long-term relationships with clients through personalised service adds to their appeal.

NAB (National Australia Bank)

National Australia Bank (NAB) offers specific low doc loan options designed for self-employed individuals and small business owners. Their products feature flexible repayment terms and competitive LVRs, making them a strong contender in the low doc loan market.

NAB is known for its transparent application process and clear eligibility requirements. Their emphasis on customer support and guidance ensures borrowers feel confident throughout the loan process, making them a reliable choice for many Australians.

Westpac

Westpac rounds out the list with its low doc loan offerings, which are designed for quick and hassle-free approval. Existing Westpac customers can enjoy additional benefits, such as preferential rates or streamlined processes, making it a convenient option for those already banking with them.

Westpac focuses on providing tailored solutions for borrowers with unique financial situations. Their robust online tools and resources further enhance the borrowing experience, making them a top choice for tech-savvy clients.

Low Doc Loans: Eligibility, Benefits, and Considerations

Eligibility Requirements

To qualify for a low doc loan, borrowers typically need to provide an income declaration, ABN, and GST registration.

Maintaining a good credit history is also crucial, as it can significantly improve approval chances. Additional requirements may include proof of business activity or asset ownership, depending on the lender.

Benefits of Low Doc Loans

Low doc loans offer several benefits, including a faster approval process due to reduced documentation requirements.

They also provide flexibility in income verification, making them accessible for self-employed individuals and those with irregular income. Customisable loan terms allow borrowers to tailor their loans to suit their financial situation.

Key Considerations

While low doc loans offer flexibility, they come with higher interest rates and fees compared to standard loans.

Borrowers should also be aware of potential limitations on LVRs, which may require a larger deposit or more equity. Comparing lenders is essential to find the best terms and conditions for individual needs.

Additional Tips for Choosing the Right Low Doc Loan

When selecting a low doc loan, it’s important to consider your long-term financial goals. Start by evaluating your current financial situation, including your income stability, credit history, and available deposit. This will help you determine which loan features are most important for your needs.

Researching and comparing lenders is crucial. Look for lenders that specialise in low doc loans and have a strong reputation for customer service. Reading reviews and seeking recommendations from other borrowers can provide valuable insights into the lender’s reliability and flexibility.

It’s also worth consulting a mortgage broker who can guide you through the process and help you find the best loan for your circumstances. Brokers have access to a wide range of lenders and can negotiate on your behalf to secure favourable terms.

Finally, be prepared for the possibility of higher costs. Low doc loans often come with additional fees, such as application fees or higher interest rates. Understanding these costs upfront will help you budget effectively and avoid surprises down the line.

The Future of Low Doc Loans in Australia

As the financial landscape evolves, low doc loans are likely to remain a vital option for Australians with non-traditional income.

Advances in technology and data analysis may lead to more innovative loan products, making it easier for borrowers to access credit. Lenders are also expected to continue refining their offerings to meet the diverse needs of self-employed individuals and small business owners.

By staying informed about market trends and understanding the features of low doc loans, borrowers can make confident decisions and take advantage of the opportunities these loans provide. Whether you’re looking to purchase a home, invest in property, or grow your business, low doc loans offer a flexible and accessible solution.

Track My Trail Team

The Track My Trail Team develops software to simplify trail book management for mortgage brokers. Their tools provide fast and practical insights to help brokers get the most out of their trail books.