Alt Doc Home Loan

An Alt Doc Home Loan is a home loan that is designed for Self Employed Australian Borrowers. These borrowers may not be able to provide the same level of documentation as required for a traditional home loan. Bank loans for Self Employed require two years of lodged (Profitable) tax returns.  These borrowers may have fluctuating incomes or may have a lot of deductions that can make it difficult for them to meet the strict documentation requirements of a traditional home loan.

With an alt doc home loan borrowers are still required to provide some documentation to demonstrate their income and ability to repay the loan. However the requirements are more flexible than those of a traditional home loan. This can include providing bank statements, business activity statements, or a declaration from an accountant.

Because of the higher risk involved in lending to borrowers who cannot provide the same level of documentation as traditional borrowers, alt doc home loans typically have higher interest rates and fees than standard home loans. Borrowers may also need to provide a larger deposit to secure the loan.

Does this mean that you will be stuck with paying a high interest rate for the life of the loan?

Not necessarily, our alt doc home loans are a vehicle to get you into a home. Once your meet the lending criteria of a Prime Lender you will be able to refinance to a more competitive rate.

Alt Doc Home Loan Features

Generally the same features that are available on a bank loan are also available on an Alt Doc Home Loan. The difference is in the documentation. If you are a self employed Australian and can’t provide lodged returns then this is a viable solution.

Alt Doc Home Loans can be used for these Purposes

Alt Doc Home Loans are suitable for Purchases, refinance of both Owner Occupied and/or Investment Property. Available to Self Employed with 6 months ABN registration.  Moreover GST registration is required if income is over $75,000 p.a.

Both investment and owner-occupied loans have similar features, fees and charges, although interest rates may vary.

• Suitable for Purchase, refinance of owner-occupied and/or Investment to 90% LVR
• Owner Occupied P&I Investment P&I and Interest Only.
• Credit History – Paid and Unpaid defaults considered at a higher rate.
• Up to 90% LVR for Debt Consolidation and 85% of completion value for Construction.
• Pay out Tax Bills
• Business cash out unlimited to 90% LVR.

Minimum & Maximum Loan Amount on a Alt Doc Home Loan

Loan size limits and LVR parameters are listed below:

Rates Vary depending on post code Location and Security Type.

1. $1,000,000 from 85% > 90% of Property Value
2. $1,500,000 from 80% > 85% of Property Value
3. $2,000,000 from 75% > 80% of Property Value
4. $5,000,000 up to 75% of Property Value

Acceptable Securities

• Standard zoned residential, rural residential or rural.
• Residential units over commercial premises.
• Land size of up to 25 acres (10 hectares).
• Hobby Farms – Must have an all weather road and access to electricity and water.
• Vacant Land – No  more than 2.5 acres and must be in cat 1 or 2 locations to 80% LVR
• High Density Greater than 40m2 living area excluding balcony and car parking and within acceptable postcode accepted to 80% LVR.

Income documentation required for ALT DOC applicants

Self Declaration of Income plus one of the below documents to support your declaration:

• An Accountants Letter verifying your income.
• 6 months of Lodged BAS Statements from the ATO Portal.
• 6 months of Business Bank Statements.

Standard Features & Versatility