Applying for a low-documentation or low doc home loan?
Non-bank lenders, like Yard, can offer more flexibility in assessing income compared to traditional banks. However, providing relevant documentation remains essential to determine your eligibility for a home loan. While specific requirements may vary depending on individual circumstances, being prepared with necessary documents can expedite the application process.
Income verification documents for a low doc home loan could include:
All of these documents are used to verify the net profit or salary you have derived from your self-employed activity.
Let’s take a closer look at these in more detail.
A declaration from your accountant is a document we use to verify your income for a low doc loan. They act as a trusted third-party endorsement, confirming your financial status, average income, and business activity. It provides us with a clear picture of your financial situation, allowing us to assess your capacity to service a home loan.
Information we require on an accountant’s declaration include:
While traditional payslips and tax returns may not be readily available, we understand the unique needs of self-employed individuals. This is where your Business Activity Statement (BAS) comes in.
A BAS is a quarterly or monthly report that businesses must lodge with the Australian Taxation Office (ATO) that outlines your business activity for a specific period. It details a business's income, expenses, GST collected and paid, and other tax obligations. For self-employed individuals applying for a low doc home loan, a BAS serves as a record of your income and financial activity. By analysing a BAS, lenders like Yard, can assess the business's profitability, cash flow, and overall financial health. This information allows us to assess your financial health and income stability, and determine if you qualify for our low-doc home loan.
We typically require 4 consecutive business activity statements.
Your bank statements are a detailed record of your business income and expenses over a specific period.
Bank statements detail your incoming and outgoing funds, allowing us to assess your business cash flow and recurring expenses. This transparency helps establish your financial stability and ability to manage your finances effectively. We use business bank statements to read business performance in a similar way we analyse a BAS. This gives us a clearer picture of your financial situation, which ultimately determines whether you would qualify for a low-doc home loan.
We require 90 day business bank statements showing your business income and expenses.
Let’s now look at some of the most common questions around documentation for our low-doc loans.
Regular or traditional home loans typically require you to submit recent payslips and tax returns to verify your income. This can be a hurdle for self-employed individuals or those with irregular income, or complex finances. Non-bank lenders like Yard take a more flexible approach to income verification when you apply for a low doc loan.
While traditional income verification is not required, you'll need to provide documents like accountant's letters, BAS statements, or bank statements. These documents help us assess your financial health and ability to repay the loan.
Applying for a home loan with Yard is a streamlined process. With a simple online application and dedicated support from our team throughout the entire process, you can quickly move towards your home ownership goals.
If you provide all the required documents our application assessment time is 2 business days. If a physical valuation is required this typically takes 2-3 business days to complete as a valuer needs to inspect your property. These are often faster approval timeframes compared to traditional lenders.
We have a simple online application process for all our home loans. You can apply for our low doc home loans online, or book a 1-on-1 call with a loan consultant if you have questions.
New loan inquiries: hello@yard.com.au
Service requests: help@yard.com.au
We consider your time, your circumstances and your wallet
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