Find and compare no doc home loans

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3.39%

Variable

3.59%

Pepper

$1.5k

Redraw facility
Offset Account
Borrow up to 85%
Extra Repayments
Interest Only
Owner Occupied

1.86

/ 5
More details

2.85%

Variable

3.05%

Pepper

$1.4k

Redraw facility
Offset Account
Borrow up to 70%
Extra Repayments
Interest Only
Owner Occupied

2.67

/ 5
More details

2.85%

Variable

3.05%

Pepper

$1.4k

Redraw facility
Offset Account
Borrow up to 65%
Extra Repayments
Interest Only
Owner Occupied

2.67

/ 5
More details

2.99%

Variable

3.19%

Pepper

$1.4k

Redraw facility
Offset Account
Borrow up to 75%
Extra Repayments
Interest Only
Owner Occupied

2.35

/ 5
More details

3.09%

Variable

3.29%

Pepper

$1.4k

Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied

2.13

/ 5
More details

3.35%

Variable

3.55%

Pepper

$1.5k

Redraw facility
Offset Account
Borrow up to 65%
Extra Repayments
Interest Only
Owner Occupied

1.86

/ 5
More details

3.35%

Variable

3.55%

Pepper

$1.5k

Redraw facility
Offset Account
Borrow up to 70%
Extra Repayments
Interest Only
Owner Occupied

1.86

/ 5
More details

3.35%

Variable

3.55%

Pepper

$1.5k

Redraw facility
Offset Account
Borrow up to 70%
Extra Repayments
Interest Only
Owner Occupied

1.86

/ 5
More details

3.35%

Variable

3.55%

Pepper

$1.5k

Redraw facility
Offset Account
Borrow up to 65%
Extra Repayments
Interest Only
Owner Occupied

1.86

/ 5
More details

3.60%

Variable

3.66%

Yellow Brick Road

$1.5k

Redraw facility
Offset Account
Borrow up to 60%
Extra Repayments
Interest Only
Owner Occupied

1.83

/ 5
More details

3.60%

Variable

3.66%

Yellow Brick Road

$1.5k

Redraw facility
Offset Account
Borrow up to 60%
Extra Repayments
Interest Only
Owner Occupied

1.76

/ 5
More details

3.60%

Variable

3.66%

RESI Mortgage Corp

$1.5k

Redraw facility
Offset Account
Borrow up to 60%
Extra Repayments
Interest Only
Owner Occupied

1.83

/ 5
More details

3.49%

Variable

3.69%

Pepper

$1.5k

Redraw facility
Offset Account
Borrow up to 75%
Extra Repayments
Interest Only
Owner Occupied

1.86

/ 5
More details

3.49%

Variable

3.69%

Pepper

$1.5k

Redraw facility
Offset Account
Borrow up to 75%
Extra Repayments
Interest Only
Owner Occupied

1.86

/ 5
More details

3.59%

Variable

3.79%

Pepper

$1.5k

Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied

1.86

/ 5
More details

3.59%

Variable

3.79%

Pepper

$1.5k

Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied

1.86

/ 5
More details

3.69%

Variable

3.88%

Pepper

$1.5k

Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied

1.86

/ 5
More details

3.97%

Variable

4.01%

Resimac

$1.6k

Redraw facility
Offset Account
Borrow up to 70%
Extra Repayments
Interest Only
Owner Occupied

1.58

/ 5
More details

4.12%

Variable

4.06%

Resimac

$1k

Redraw facility
Offset Account
Borrow up to 70%
Extra Repayments
Interest Only
Owner Occupied

1.58

/ 5
More details

3.89%

Variable

4.08%

Pepper

$1.6k

Redraw facility
Offset Account
Borrow up to 85%
Extra Repayments
Interest Only
Owner Occupied

1.86

/ 5
More details

Learn more about home loans

As the name suggests, a no-doc home loan is a home loan that requires no proof of income documentation. When you apply for a standard home loan, you’ll usually need to provide proof of income and employment and may also have to include tax returns and payslips with your application. With a no-doc home loan, you may not need to provide any of these documents to apply for a home loan.

While this sounds like an incredibly fast and convenient way to apply for a loan, it’s not the case. Given the high risk these loans carry, no-doc home loans are rare in Australia and are generally not offered by many banks or credit unions. In Australia, no-doc home loans aren’t common, and low-doc home loans are usually offered as an option for self-employed borrowers who don’t have traditional proof of income.

What is a no-doc home loan?

Regular home loans usually require the borrower to provide full documentation proving their income, employment and ability to pay the loan back. No-doc loans don’t require the borrower to provide as much financial documentation when applying for a home loan.

For self-employed borrowers who don’t have access to regular PAYG payslips, applying for a home loan can be a challenge. This may also be the case for freelancers, investors, contractors or those who have recently started a small business and have access to very limited financial documentation.

While most financial institutions don’t provide home loans to customers with no financial documentation, there are some lenders that do offer no-doc home loans. Each lender will have their own conditions, but no-doc borrowers will usually need to provide an ABN showing proof that they own a registered business.

Where low-doc home loans usually require the borrower to provide tax returns, BAS statements and an accountant’s letter, no-doc home loans don’t require any of this documentation. In lieu of financial documents, when you apply for a no-doc home loan, you still have to sign a statement of your assets and liabilities or a declaration that confirms you can afford to service the loan.

As no-doc home loans pose a greater risk, some lenders may impose additional conditions onto the loan and insist that the loan is secured by a commercial property and be in the name of a company or trust with an ABN.

Depending on the type of no-doc loan you apply for, you may only be able to use the funds to purchase an investment property, and the lender may impose restrictions on the type of property you can use the loan for.

As there is no documentation or proof of income to back up the loan, the actual security is all the lender has to mitigate the risk. For this reason, no-doc loans aren’t widely available, and lenders that do offer no-doc home loans tend to have much tighter conditions.

Given the lack of financial documentation, no-doc home loans carry a greater risk to the lender. To offset the risk, no-doc home loans usually have higher interest rates and fees and may also require a larger deposit.

Alternatives to no-doc home loans

None of the major Australian financial institutions offer no-doc home loans, although there may be some smaller private lenders in the market who do offer no-doc home loans. If you opt for a no-doc home loan from a smaller lender, always do your research to make sure you’re getting a good deal from a lender you can trust.

As low-doc home loans are more easily accessible and there are a wide range of lenders offering low-doc home loans, this may be a better option for borrowers with limited financial documentation.

Low-doc home loans are similar to no-doc home loans except they require people to provide some level of documentation before their home loan is approved. Like the no-doc home loan, customers who borrow money using this option will be considered higher-risk borrowers as they have limited proof of income.

As such, these loans generally charge higher interest rates and require larger deposits, much like no-doc loans. In some cases, a lender may also require that the loan is secured against an asset of the borrower’s for extra security. This may be a property that they already own or a vehicle that the bank would repossess if the mortgage repayments could not be made.

How to compare no-doc home loans

When choosing a home loan, there are several important factors to consider. The interest rate offered by the lender should be taken into consideration as a high-interest rate can add thousands of dollars to your loan that you wouldn’t otherwise have to pay. As no-doc home loans traditionally have high interest rates, it might take considerable research to find the best deal.

Aside from the interest rate, it’s important to look at the other fees and expenses associated with the no-doc home loan you’re considering. An easy way of doing this is to look at the comparison rate of the home loan, as this will give you a better idea of the overall cost of the loan, inclusive of the interest rate and some fees.

No-doc loans tend to have stricter loan-to-value ratio (LVR) requirements, meaning that you’ll probably need to put down a larger deposit. Due to the risky nature of no-doc home loans, you won’t be able to borrow as much as you would with a low-doc or standard home. Take note of the different LVR options when comparing loans to ensure the no-doc home loan still suits your budget.

Another feature to compare is repayment frequency. If you’re self-employed or a freelance contract worker, you may want a no-doc home loan that lets you choose between making your repayments weekly, fortnightly or monthly.

Before committing to a home loan, it’s also important to find out what features are offered by the lender. For example, some loans offer a redraw or offset facility that may help reduce the amount of interest you pay over time.

How do I apply for a no-doc home loan?

Each no-doc home loan lender will have its own lending criteria and application process. If you’re self-employed, in some cases you may need to provide an ABN to prove you own the business. You may also need to provide a letter from your accountant certifying you can afford to make the no-doc home loan repayments.

Before you decide on a no-doc home loan, consider your low-doc home loan options first. Low-doc home loans require less documentation than standard home loans and tend to have lower interest rates and fewer fees and conditions than no-doc home loans.

Regardless of whether you choose a low-doc home loan or a no-doc home loan, make sure you do your research and compare your options.

Applying for a home loan is a big decision, so before you choose a lender or a loan, make sure you’ve got the bigger picture. Take into the account the costs, fees and your personal situation over the life of the loan.

Frequently asked questions

Who has the best home loan?

Determining who has the ‘best’ home loan really does depend on your own personal circumstances and requirements. It may be tempting to judge a loan merely on the interest rate but there can be added value in the extras on offer, such as offset and redraw facilities, that aren’t available with all low rate loans.

To determine which loan is the best for you, think about whether you would prefer the consistency of a fixed loan or the flexibility and potential benefits of a variable loan. Then determine which features will be necessary throughout the life of your loan. Thirdly, consider how much you are willing to pay in fees for the loan you want. Once you find the perfect combination of these three elements you are on your way to determining the best loan for you. 

How can I get a home loan with bad credit?

If you want to get a home loan with bad credit, you need to convince a lender that your problems are behind you and that you will, indeed, be able to repay a mortgage.

One step you might want to take is to visit a mortgage broker who specialises in bad credit home loans (also known as ‘non-conforming home loans’ or ‘sub-prime home loans’). An experienced broker will know which lenders to approach, and how to plead your case with each of them.

Two points to bear in mind are:

  • Many home loan lenders don’t provide bad credit mortgages
  • Each lender has its own policies, and therefore favours different things

If you’d prefer to directly approach the lender yourself, you’re more likely to find success with smaller non-bank lenders that specialise in bad credit home loans (as opposed to bigger banks that prefer ‘vanilla’ mortgages). That’s because these smaller lenders are more likely to treat you as a unique individual rather than judge you according to a one-size-fits-all policy.

Lenders try to minimise their risk, so if you want to get a home loan with bad credit, you need to do everything you can to convince lenders that you’re safer than your credit history might suggest. If possible, provide paperwork that shows:

  • You have a secure job
  • You have a steady income
  • You’ve been reducing your debts
  • You’ve been increasing your savings

Can I change jobs while I am applying for a home loan?

Whether you’re a new borrower or you’re refinancing your home loan, many lenders require you to be in a permanent job with the same employer for at least 6 months before applying for a home loan. Different lenders have different requirements. 

If your work situation changes for any reason while you’re applying for a mortgage, this could reduce your chances of successfully completing the process. Contacting the lender as soon as you know your employment situation is changing may allow you to work something out. 

Who offers 40 year mortgages?

Home loans spanning 40 years are offered by select lenders, though the loan period is much longer than a standard 30-year home loan. You're more likely to find a maximum of 35 years, such as is the case with Teacher’s Mutual Bank

Currently, 40 year home loan lenders in Australia include AlphaBeta Money, BCU, G&C Mutual Bank, Pepper, and Sydney Mutual Bank.

Even though these lengthier loans 35 to 40 year loans do exist on the market, they are not overwhelmingly popular, as the extra interest you pay compared to a 30-year loan can be over $100,000 or more.

Are bad credit home loans dangerous?

Bad credit home loans can be dangerous if the borrower signs up for a loan they’ll struggle to repay. This might occur if the borrower takes out a mortgage at the limit of their financial capacity, especially if they have some combination of a low income, an insecure job and poor savings habits.

Bad credit home loans can also be dangerous if the borrower buys a home in a stagnant or falling market – because if the home has to be sold, they might be left with ‘negative equity’ (where the home is worth less than the mortgage).

That said, bad credit home loans can work out well if the borrower is able to repay the mortgage – for example, if they borrow conservatively, have a decent income, a secure job and good savings habits. Another good sign is if the borrower buys a property in a market that is likely to rise over the long term.

What are the responsibilities of a mortgage broker?

Mortgage brokers act as the go-between for borrowers looking for a home loan and the lenders offering the loan. They offer personalised advice to help borrowers choose the right home loan for their needs.

In Australia, mortgage brokers are required by law to carry an Australian Credit License (ACL) if they offer credit assistance services. Which is the legal term for guidance regarding the different kinds of credit offered by lenders, including home loan mortgages. They may not need this license if they are working for an aggregator, for instance, as a franchisee. In both these situations, they need to comply with the regulations laid down by the Australian Securities and Investments Commission (ASIC).

These regulations, which are stipulated by Australian legislation, require mortgage brokers to comply with what are called “responsible lending” and “best interest” obligations. Responsible lending obligations mean brokers have to suggest “suitable” home loans. This means loans that you can easily qualify for,  actually meet your needs, and don’t prove unnecessarily challenging for you.

Starting 1 January 2021, mortgage brokers must comply with best interest obligations in addition to responsible lending obligations. These require mortgage brokers to act in the best interest of their customers and also requires them to prioritise their customers’ interests over their own. For instance, a mortgage broker may not recommend a lender who gives them a commission if that lender’s home loan offer does not benefit that particular customer.

How do I refinance my home loan?

Refinancing your home loan can involve a bit of paperwork but if you are moving on to a lower rate, it can save you thousands of dollars in the long-run. The first step is finding another loan on the market that you think will save you money over time or offer features that your current loan does not have. Once you have selected a couple of loans you are interested in, compare them with your current loan to see if you will save money in the long term on interest rates and fees. Remember to factor in any break fees and set up fees when assessing the cost of switching.

Once you have decided on a new loan it is simply a matter of contacting your existing and future lender to get the new loan set up. Beware that some lenders will revert your loan back to a 25 or 30 year term when you refinance which may mean initial lower repayments but may cost you more in the long run.

What is a debt service ratio?

A method of gauging a borrower’s home loan serviceability (ability to afford home loan repayments), the debt service ratio (DSR) is the fraction of an applicant’s income that will need to go towards paying back a loan. The DSR is typically expressed as a percentage, and lenders may decline loans to borrowers with too high a DSR (often over 30 per cent).

I can't pick a loan. Should I apply to multiple lenders?

Applying for home loans with multiple lenders at once can affect your credit history, as multiple loan applications in short succession can make you look like a risky borrower. Comparing home loans from different lenders, assessing their features and benefits, and making one application to a preferred lender may help to improve your chances of success

How do I take out a low-deposit home loan?

If you want to take out a low-deposit home loan, it might be a good idea to consult a mortgage broker who can give you professional financial advice and organise the mortgage for you.

Another way to take out a low-deposit home loan is to do your own research with a comparison website like RateCity. Once you’ve identified your preferred mortgage, you can apply through RateCity or go direct to the lender.

How will Real Time Ratings help me find a new home loan?

The home loan market is complex. With almost 4,000 different loans on offer, it’s becoming increasingly difficult to work out which loans work for you.

That’s where Real Time RatingsTM can help. Our system automatically filters out loans that don’t fit your requirements and ranks the remaining loans based on your individual loan requirements and preferences.

Best of all, the ratings are calculated in real time so you know you’re getting the most current information.

Does Australia have no cost refinancing?

No Cost Refinancing is an option available in the US where the lender or broker covers your switching costs, such as appraisal fees and settlement costs. Unfortunately, no cost refinancing isn’t available in Australia.

Can I get a home loan if I am on an employment contract?

Some lenders will allow you to apply for a mortgage if you are a contractor or freelancer. However, many lenders prefer you to be in a permanent, ongoing role, because a more stable income means you’re more likely to keep up with your repayments.

If you’re a contractor, freelancer, or are otherwise self-employed, it may still be possible to apply for a low-doc home loan, as these mortgages require less specific proof of income.

Will I have to pay lenders' mortgage insurance twice if I refinance?

If your deposit was less than 20 per cent of your property’s value when you took out your original loan, you may have paid lenders’ mortgage insurance (LMI) to cover the lender against the risk that you may default on your repayments. 

If you refinance to a new home loan, but still don’t have enough deposit and/or equity to provide 20 per cent security, you’ll need to pay for the lender’s LMI a second time. This could potentially add thousands or tens of thousands of dollars in upfront costs to your mortgage, so it’s important to consider whether the financial benefits of refinancing may be worth these costs.

Is there a limit to how many times I can refinance?

There is no set limit to how many times you are allowed to refinance. Some surveyed RateCity users have refinanced up to three times.

However, if you refinance several times in short succession, it could affect your credit score. Lenders assess your credit score when you apply for new loans, so if you end up with bad credit, you may not be able to refinance if and when you really need to.

Before refinancing multiple times, consider getting a copy of your credit report and ensure your credit history is in good shape for future refinances.

I have a poor credit rating. Am I still able to get a mortgage?

Some lenders still allow you to apply for a home loan if you have impaired credit. However, you may pay a slightly higher interest rate and/or higher fees. This is to help offset the higher risk that you may default on your repayments.

Will I be paying two mortgages at once when I refinance?

No, given the way the loan and title transfer works, you will not have to pay two mortgages at the one time. You will make your last monthly repayment on loan number one and then the following month you will start paying off loan number two.

If I don't like my new lender after I refinance, can I go back to my previous lender?

If you wish to return to your previous lender after refinancing, you will have to go through the refinancing process again and pay a second set of discharge and upfront fees. 

Therefore, before you refinance, it’s important to weigh up the new prospective lender against your current lender in a number of areas, including fees, flexibility, customer service and interest rate.

Can I refinance if I have other products bundled with my home loan?

If your home loan was part of a package deal that included access to credit cards, transaction accounts or term deposits from the same lender, switching all of these over to a new lender can seem daunting. However, some lenders offer to manage part of this process for you as an incentive to refinance with them – contact your lender to learn more about what they offer.

How to break up with your mortgage broker

If you find a mortgage broker giving you generic advice or trying to sell you a competitive offer from an unsuitable lender, you might be better off  breaking up with the mortgage broker and consulting someone else. Breaking up with a mortgage broker can be done over the phone, or via email. You can also raise a complaint, either with the broker’s aggregator or with the Australian Financial Complaints Authority as necessary.

As licensed industry professionals, mortgage brokers have the responsibility of giving you accurate advice so that you know what to expect when you apply for a home loan. You may have approached the mortgage broker, for instance, because you have questions about the terms of a home loan a lender offered you. 

You should remember that mortgage brokers are obliged by law to act in your best interests and as part of complying with The Australian Securities and Investments Commission’s (ASIC) regulations. If you feel you didn’t get the right advice from the mortgage broker, or that you lost money as a result of accepting the broker’s suggestions regarding a lender or home loan offer, you can file a complaint with the ASIC and seek compensation. 

When you first speak to a mortgage broker, consider asking them about their Lender Panel, which is the list of lenders they usually recommend and who may pay them a commission. This information can help you decide if the advice they give you has anything to do with the remuneration they may receive from one or more lenders.