Low-doc home loans are loans aimed at people who wish to purchase a home, but do not necessarily meet standard lending criteria. These people are normally self employed, like tradies or shop keepers.  The ‘low-doc’ phrase does not mean you can produce minimal documents,  rather, it means that you will need to provide evidence of your income outside of the standard documents that lenders typically ask for.

Like traditional home lenders, low-doc lenders normally require borrowers to have a solid credit history, which is not necessarily the case with a non-conforming home loan.

In addition, financial regulator ASIC warns on its Moneysmart website that low-doc loans “are usually offered at higher interest rates and may include terms that restrict borrowers.”