Full Doc Loans
Full Documentation loan is the standard loan where the borrower’s consistent income verification documents such as Payslips/Tax Return, NOA & Business Activity Statements (BAS) are available at the time of applying for a loan. The benefits of applying with full documentation is that you will have a better loan product with good features and low interest rate.
Low Doc Loans
A Low Documentation loan is the type of loan where the borrower takes out a mortgage using less documentation than what’s required for standard full doc loan. This is sometimes also called Alternative Documentation (Alt Doc). For whatever reasons, if your income verification documents such as updated tax return and notice of assessment are not available at the time of submitting the loan application, Low Doc/Alt Doc loan may be an option for you.
No Doc Loans
As the name suggests No-Doc loan is the type of loan where no proof of income is required. This is a rare type of loan offered only by a small number of lenders.
Considering it’s high risk, some lenders may offer a No Doc loan but with additional conditions on to the loan such as having a commercial property as security, low LVR and loan be taken out in the name of a trust or company with a registered Australian Business Number (ABN).