One advantage of a Lo-Doc loan is that for those people who are self employed, the usual waiting period after starting a new job is waived. Therefore you would only have to have registered ‘at the very least’ a Government ABN number to qualify for this type of loan.

Lo-Doc Loans are usually penalised by a higher interest rate, a lower LVR or a combination of both.

No-Documentation home loans, otherwise known as No-Doc loans require an even lower level of income verification than Lo-Doc Loans. Due to the higher risk to the lender, these loans come with higher interest rates and LVR penalties than other loans.