Full Doc vs Alt Doc Home Loans in Australia | HR Mortgage & Finance

Securing the right home loan can be challenging, especially when you’re comparing options and trying to understand which one actually suits your situation. One of the most important choices many borrowers face is deciding between a Full Doc Home Loan and an Alt Doc Home Loan.

In this guide, we’ll break down what each option means, who they’re for, how they work, what documents you’ll need, and how lenders assess your application — so you can make a confident decision.

What Is a Full Doc Home Loan?

A Full Doc (Full Documentation) home loan is the standard type of mortgage in Australia. If you’re a PAYG employee with regular income, this is the most common pathway for buying a home or refinancing.

How it works:

You provide comprehensive proof of income and expenses.
Lenders assess your borrowing power based on payslips, tax returns, group certificates, bank statements and other financial documents.
The process follows strict lending criteria and is generally straightforward for borrowers with stable employment.

Typical borrowers:

Salaried employees working full-time or part-time
Applicants with a clean credit history
Borrowers with strong, provable income

Lenders offering Full Doc loans:
Most Australian banks and lenders provide Full Doc home loans. This includes major banks like:

Commonwealth Bank (CBA)
Westpac
ANZ
National Australia Bank (NAB)
St. George
Macquarie Bank
Suncorp

Full Doc loans often come with the lowest interest rates and the widest range of features — including offset accounts, redraw facilities, fixed and variable rate options, and the ability to borrow up to 95% of the property value (with Lenders Mortgage Insurance if over 80% LVR).

What Is an Alt Doc Home Loan?

An Alt Doc (Alternative Documentation) home loan is designed for borrowers who don’t have standard PAYG income proof but can demonstrate income through other means.

These loans were created for self-employed Australians, freelancers, contractors, and small business owners whose income might fluctuate month to month — or whose tax returns don’t reflect their true earning capacity due to deductions and business write-offs.

How it works:

Instead of payslips, you provide alternative income documents such as:
- 6–12 months of business bank statements showing regular deposits
- Recent Business Activity Statements (BAS)
- An accountant’s letter verifying your income
- ABN and GST registration proof (often lenders require at least 1–2 years)
The lender uses these documents to assess your capacity to repay the loan.

Typical borrowers:

Self-employed sole traders and small business owners
Contractors or gig economy workers
Borrowers with recent career changes who lack two full years of tax returns

Lenders offering Alt Doc loans in Australia:
Not all banks offer Alt Doc loans. This space is usually covered by specialist lenders and non-bank lenders who are more flexible with income assessment. Popular Alt Doc lenders include:

Bluestone Mortgages
Liberty Financial
Pepper Money
La Trobe Financial
RedZed
Resimac (selected products)

What’s the Key Difference Between Full Doc and Alt Doc?

The biggest difference comes down to income verification.

Feature	Full Doc Loan	Alt Doc Loan
Income Proof	Payslips, tax returns, full financials	BAS, business bank statements, accountant’s letter
Typical Borrower	Salaried employee	Self-employed, contractor
Interest Rates	Lower	Slightly higher
Maximum LVR	Up to 95% (with LMI)	Generally up to 80%
Fees	Standard	May include risk loading
Approval	Stricter criteria	More flexible with income proof

How Much Deposit Do You Need for Each?

A Full Doc loan usually allows you to borrow up to 95% of the property value if you’re willing to pay Lenders Mortgage Insurance (LMI) for any portion above 80% LVR.

With an Alt Doc loan, the maximum LVR is usually up to 80%, which means you’ll generally need a minimum 20% deposit plus funds to cover costs such as stamp duty and fees.

Some specialist lenders may stretch to 85% LVR for Alt Doc products in specific circumstances, but this is less common and often comes with higher interest rates or stricter terms.

Pros and Cons: Full Doc vs Alt Doc Home Loans

Advantages of Full Doc Loans

Access to lower interest rates
Broader choice of lenders and products
More flexible loan features
Lower minimum deposits with LMI available

Disadvantages of Full Doc Loans

Heavy documentation requirements
Not suitable for self-employed with non-standard income
Less flexibility for borrowers with inconsistent income history

Advantages of Alt Doc Loans

Easier approval for self-employed borrowers
Flexible income assessment
Quicker path to homeownership if you can’t supply full tax returns

Disadvantages of Alt Doc Loans

Higher interest rates and risk fees
Larger minimum deposit required
Fewer lenders to choose from

Which Australian Lenders Offer Both?

Many Australians prefer working with lenders that can offer both options, so you have flexibility if your situation changes. For example:

Bluestone Mortgages is well known for Alt Doc lending but also has Full Doc products.
Liberty Financial specialises in solutions for self-employed and PAYG borrowers alike.
Pepper Money has a range of specialist loans for both standard and non-standard income scenarios.

How to Choose: Which Home Loan Is Right for You?

Choosing the right home loan depends on your income type, how much documentation you can provide, and your long-term goals. If you have a secure salary and full documentation, a Full Doc loan will almost always be the better choice for cost and flexibility.

If you’re self-employed and your paperwork doesn’t fit standard lending guidelines, an Alt Doc loan can open the door to the property market or help you refinance when other lenders say no.

How HR Mortgage & Finance Can Help You

At HR Mortgage & Finance, we understand that every borrower’s story is unique — especially for self-employed clients and business owners who don’t fit the usual lending boxes.

Here’s why clients trust us:

Specialist advice: We know how to match you with Full Doc or Alt Doc lenders who suit your exact needs.
Access to major banks and specialist lenders: From the Big Four to flexible non-banks, we compare options you might not find on your own.
End-to-end support: We handle paperwork, approvals, and negotiation, so you don’t have to stress.
Honest advice: We’ll tell you upfront what you can borrow, what deposit you’ll need, and how to position your application for success.

If you’re self-employed or simply want to see what’s possible, talk to our team today.

Talk to Us About Your Home Loan Options

Ready to buy, refinance, or just explore your options? Get expert help from HR Mortgage & Finance.