Guide / Alt Doc
Alt Doc home loans: how can self-employed income be shown?
Different income evidence can open a conversation. It does not remove the need to verify the numbers.
Alt Doc, or alternative documentation, is a way to assess income using evidence specified by the lender for that product when the standard full-document set does not tell the whole story. It is still an assessed home loan.
Full Doc versus Alt Doc
A Full Doc route uses the standard income documents required by that lender and product. An Alt Doc route may permit a different combination of evidence for an eligible self-employed borrower. Neither label is a universal industry checklist: what counts, how recent it must be and how income is calculated vary by lender and product.
“Alt Doc” and “low doc” are often encountered in the same search, but they should not be read as “no doc”. ASIC's low-doc guidance describes a different level of financial documentation, not a waiver of verification. Income, existing commitments and the ability to repay still matter.
What can help explain business income?
Start by mapping the income sources: business takings, salary, distributions or other sources, where applicable. Tax returns, business financial statements, BAS and business bank records can help form that picture, but the current product checklist determines which evidence can actually be used. A BAS records tax-related business activity; it is not, on its own, a complete measure of personal income or loan eligibility.
Prepare an explanation for seasonal revenue, changes in business structure or one-off transactions. Ask the broker or lender how the chosen product treats those facts, rather than trying to fit a different business into a generic checklist.
Questions to settle before lodging
- Is a Full Doc route available with the records I already have?
- If not, which Alt Doc route is relevant to my business structure?
- Which documents are accepted, and for what period?
- How will the lender treat business expenses, other debts and variable income?
- What are the total costs, features and trade-offs of each suitable option?
So Money's residential range includes Full Doc and Alt Doc pathways. The appropriate path and accepted records are determined by current policy and individual credit assessment; this guide does not determine eligibility.
What does “low doc” mean? ↗ Document preparation guide ↗
Sources and further reading
- ASIC MoneySmart — Low-doc loan definition
- ASIC — Review of low-doc lending practices
- ATO — Business activity statements
- ASIC MoneySmart — Using a mortgage broker
General information only. Accepted evidence, product features, costs and eligibility depend on the lender's current policy and individual credit assessment.