One option is a simple, quick and comparatively trouble-free finance product called a lo-document loan or lo-doc loan for short. This type of loan caters mainly for self-employed borrowers who are unable to provide full financial statements and other evidence of their income.

There is a growing range of lo-doc products on the market with many lenders offering standard and premium lo-doc loans with the choice of fixed or variable interest rates. Borrowers also get access to a range of loan features and options never previously available.

However, most lenders require lo-doc borrowers to take out lenders’ mortgage insurance when borrowing up to 80 per cent of the property value. Some lenders also charge a higher interest rate for these products. These rates may be reduced after a certain time period or when you are able to provide tax returns.

The challenge is to find the best loan with the best features for your particular circumstances. That’s where our team of experts can help.

Lo-Doc quick facts

• less paperwork - requires self-certification instead of traditional proof of income
• streamlined application process
• can only borrow up to 80 per cent of property value
• interest rate discounts may apply after specific time period
• may be eligible for lower interest rate if able to supply tax returns at a later date
• requires clean credit history
• lenders may not lend in high risk areas such as inner city high-rises or large rural allotments
• generally higher interest rates with less features than a traditional loan
• may require lender’s mortgage insurance, adding to cost of loan