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No Doc Or Low Doc What is the Difference?

Otto Dargan

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Both no doc loans and low doc loans involve simple procedures. What sets them apart is the rate of interest and the process involved. Loans have always involved lengthy procedures. But that is not the case with no doc and low doc home loans, which hardly involve much paperwork, as indicated by their names.

No doc loan info

You will find that with no docs, there is no need to disclose the details of your assets, liabilities or income. Of course, different lenders have different eligibility requirements, but in general, it is simply a matter of signing a declaration where you will state that you can handle the repayments easily and on time. No doc loans are usually offered by private lenders at exorbitant rates of interest that can go as high as 72% per annum. These lenders do not need details about your credit rating or history. If you are in touch with a good home loan expert, then you can find a lender whose interest rates are more reasonable. You can expect approximately 70 percent of the value of your property towards a no doc loan.

Low doc loans

On the other hand low docs are home loans that can be used for different purposes related to your home. For these, the lender does not verify your income. They ask you to sign a declaration stating your assets, liabilities and income. No further financial documentation is asked. Low doc loans are for the self-employed in particular. Usually, an eligible borrower must have an ABN that has been registered for at least two years. There are instances where this eligibility criterion is waived off, where lenders accept an applicant with no ABN or an ABN that has been registered for less than two years.

That said, both low doc and no doc home loans eliminate tedious paperwork.

About the Author

Otto is a Mortgage Broker that specializes in specific areas of home loans. His company Home loan experts contains various information on some select areas such as low doc loans and non-resident home loans.


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