Not everyone’s finances fit inside a traditionally shaped box.

 

When applying for a home loan, most borrowers are told the same story: you’ll need full-time work, two years of tax returns and a neat little stack of payslips. Not you? Sorry, try again in twelve months.

But the way we earn money has changed, and lending is (finally) starting to catch up. That’s where Alt Doc loans come in.

You shouldn’t need to tick every box on a bank’s checklist to be taken seriously. You just need a lender who looks at the full picture.

 

What is an Alt Doc Home Loan?

Alt Doc stands for alternative documentation. It’s exactly what it sounds like; an alternative way to prove your income when the usual paperwork doesn’t tell the whole story.

Instead of payslips and tax returns, you can use:

• Business Activity Statements (BAS)
• 6–12 months of business bank statements
• A letter from your accountant confirming income

It’s a structure designed to reflect how real people earn, especially if you’re running a business, working freelance, or drawing income from multiple streams.

 

Who are Alt Doc loans for?

Alt Doc loans could be a great fit if you:

• Work for yourself or have recently become self-employed
• Invoice irregularly or seasonally
• Don’t yet have two full years of tax returns
• Minimise your taxable income for business reasons

 

Is this the same as a Low Doc loan?

Not quite. The terms get thrown around a lot and are sometimes used interchangeably, but there is a difference.

Some lenders use Low Doc loans to ask for less paperwork, but they also often come with tighter conditions, like higher rates or bigger deposits. Alt Doc loans, particularly through specialist lenders like Bluestone, are more flexible and take a more balanced view of your financial situation.

While both options exist for borrowers without full financials, Alt Doc is typically the more competitive and comprehensive choice.

 

What can you do with an Alt Doc loan?

Just about everything you could with a standard loan. You can:

• Buy a new home without all the restrictive paperwork required to qualify with traditional lending criteria.
• Refinance your current loan to lock in a better rate or consolidate other debts without the full-doc rigmarole.
• Apply for a variable rate just like you would with any other borrower or through a full-doc loan.

 

Self-employed doesn’t mean you need to settle for a second-rate home loan, and an Alt Doc loan isn’t a backup plan. In fact, for many Australians who earn more flexibly, it’s a smarter one.

A quick example…

Say you’ve been freelancing for 18 months. Business is good, but you haven’t yet lodged two full tax returns. A traditional lender might see that as a “red flag”.

With Bluestone, you could submit 12 months of business bank statements and a letter from your accountant. Simple. You’re not doing mental gymnastics to prove your income. You’re just offering a clearer view of how you actually earn.

 

What to have ready

Even with a more flexible lender, preparation matters. Here’s your checklist to make sure you’re putting your best foot forward:

✔ Organise your docs

Your BAS, bank statements or accountant’s letter — get them together early. A tidy paper trail means there is less back and forth during application, making it a smoother process.

✔ Understand your numbers

Things like your loan-to-value ratio (LVR) can impact your options. The better you understand your position, the easier it is to make smart decisions.

✔ Talk to a broker early

This isn’t a journey you need to take solo. A broker who understands Alt Doc lending can help match you with the right loan and avoid unnecessary delays.

 

Now to apply…

At Bluestone, we know income doesn’t always come in the form of a payslip and that’s not a problem. We specialise in Alt Doc lending because we believe borrowers shouldn’t be boxed out of the market just because their paperwork looks different.

Whether you’re self-employed, running your own business, or just earning outside the usual mould, we look at the full picture. We assess real financial health, not just tick-box criteria, and we work closely with brokers to make the process as straightforward as possible.

If you’re ready to explore your options, talk to your broker who can help you find a home loan that works for you.

 

Terms and conditions and lending criteria apply. All applications are subject to assessment. 

The information provided in this article is general in nature and is not intended to be financial advice. We always recommend you seek your own, independent financial advice which can take into consideration your specific circumstances.