Lodoc loans
  • Self employed or can't provide past tax returns?? ...A lodoc loan maybe for you ...
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Lodoc loans


Lo Doc loan are designed mainly for people who have some equity (or deposit) but who may have trouble showing evidence of their income levels. So if you are self employed or have irregular incomes, this might be the best option for you.

In the past lodoc loans had significantly higher interest rates than standard loans and therefore were generally only used as a lender of last resort. In recent years, the rates have moved down to the point where a number of lenders now offer these loans at standard interest rates.

Most lodoc lenders will allow a loan of up to 80% of the value of the property you provide as security. Some lenders may even allow loans above this however interest rates are often higher for loans above 80% if possilbe at all..

Example - Jim has $250,000 in deposit and wants to purchase a $1 million dollar property but he is not able to prove he earns enough money to afford the loan. Being self employed, Jim may earn a good income but has been slow in getting tax returns done, or he may receive income in lumps rather than consistently over the course of each year. This is where lodoc loans can help. There are lodoc lenders who may give Jim the ~$800,000 loan he needs to purchase the property.

There are many different tiers and types of lodoc lenders in the market and which one is most suitable depends on your particular circumstances. Please call Home Loan Advice Centre on 02-9210-1000 to get more information.


Types of Lodocs


Self declared income

This is where you sign a declaration stating to the the bank your annual income.The lender is willing to provide you with a loan on the strength of this declaration and some other reduced documentary evidence. You may be able to get an 80% lodoc loan up to around $1 million or more in some circumstances under such lodocs.Lenders may require quarterly BAS statements as a proxy for not having to provide tax returns.


Account statement or Accountant letter

Your accountant signs a letter or standard form stating your income or that they believe you can afford the repayments on a loan of a certain size. This needs to be on accountant letterhead, signed and dated. .




Home Loan Advice Centre's loan service is provided to you completely free of charge. We can do this because our lenders (30 of Australia's main lending institutions) pay us commissions based on the wholesale volume of loans our group refers to them. We can therefore, offer you our experience and expertise, and guide you through the entire home buying journey, without charging you a cent. You end up with exactly the same loan if you'd organised it through a bank yourself, but we do all the leg work and negotiations with the banks for you ..... a great result!

So if you are looking to buy a home or investment property visit our 5 minute online enquiry page. We'll assess your loan options and send you a full report of your capacity. Also we'll include parts 1 and 2 of our eCourse ... an indepth guide to buying property in Australia. Click to see a sample.



For more information on this topic or any other topics please call Home Loan Advice Centre on 1300-729-177 or 02-9210-1000 or see the following links:


Application process

How much can I borrow

Loan enquiry page