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The terms are used loosely, and different lenders mean different things by them. The distinction that matters is whether the lender checks your capacity to pay from income, or relies on the asset.
Side by side
| Full doc | Low doc | No doc | |
|---|---|---|---|
| Income evidence | Two years of tax returns and financials | BAS, bank statements, accountant’s letter or a self declaration | None |
| Decision based on | Servicing, then security | Security and exit, with a servicing sense check | Security and exit |
| Typical lender | Bank | Non-bank and private | Private |
| Typical term | Years | 3 to 36 months | 1 to 12 months |
| Leverage | Highest | Up to 75% of value | Usually lower |
| Price | Lowest | Middle | Highest |
| Speed | Weeks | One to three weeks | Days |
When low doc fits
- The business is sound but the latest tax returns are not lodged.
- Income has grown and old financials understate it.
- The borrower is self-employed with irregular income that bank formulas handle badly.
- The term needed is a year or more, so monthly servicing matters.
A low-doc business loan suits a borrower who can show the business trades and can carry the payments, without the full bank file.
When no doc fits
- The need is short: a settlement, a tax payment, a gap before a sale.
- Interest is prepaid or capitalised, so monthly servicing is not the question.
- The exit is an event, such as a property sale or refinance, not business cash flow.
- Time does not allow an income assessment.
Caveat loans and short second mortgages are commonly written on this basis. There is more on the caveat version in caveat loan with no financials.
What replaces income evidence
Without income documents, the lender leans on three things. A conservative valuation. A lower loan to value ratio, so there is a buffer if the property must be sold. And an exit that can be evidenced: a contract of sale, a listing, a refinance approval in progress, or a receivable with paperwork behind it. See what is an exit strategy.
A warning on no doc
A loan approved with no look at income can be a loan you cannot afford. The safeguard is your own arithmetic. Know the total cost for the term, know where the repayment is coming from and have a second option if the first exit is late. If the only plan is to refinance into another no doc loan, the equity in the property will be consumed by fees and interest.
Which to ask for
Describe the situation and what you can provide, and let the lender place it. Offering more documentation than the minimum usually lowers the price.
We match you with a funder and email you their introduction. Reply to it and they’ll be in touch.
Get matched with a funderFAQ
Does no doc really mean no documents?
No. It means no income documents. You still provide identification, company and trust documents, details of the security, existing loan statements, a business purpose declaration and evidence of your exit.
Which is cheaper?
Low doc. The more a lender can verify, the lower the risk and the rate. Low-doc business loans on this site start from 11% p.a.
Can I get a no doc loan to buy a home?
No. Consumer lending requires income verification under responsible lending laws. No doc lending is for business purposes only.