CBA Exits Low Doc Loans – Other Lenders Step up


Commonwealth Bank has announced that it will cease offering Low Doc Loans for new home loans and lines of credit from both brokers and propriety channels from the marketplace from 28 September 2018. In addition to the removal of the of Low Doc Loans the bank has announced it will remove several other home loan products including.

  • 1 Year Guaranteed Rate
  • 7 Year Fixed Rate
  • 12 Month Discounted Variable Rate
  • Rate Saver
  • 3 Year Special Rate Saver
  • No Fee Variable Rate
What is a low doc home loan?

Low-documentation or low-doc loans are for people – generally the self-employed – who have difficulty getting the documentation together that is required to get a traditional home loan.

Low-doc loans have become very popular over the past few years and industry figures state they comprise around 10 per cent of all mortgage loans written.

Traditionally, the interest rate offered on these types of loans was higher than for the standard variable rate but recently they tend to be offered at similar rates. While lenders have various methods of establishing whether they will lend someone money, there are some major differences between mainstream and low-doc loans.

Differences between standard and low-doc loans
  • Low-doc loans do not require traditional proof of income such as company financials or tax returns.
  • Borrowers seeking a low-doc loan generally complete a declaration that confirms they can afford the loan. This is known as self-certification.
  • Low-doc loans tend to be more attractive to self-employed people or full-time investors who may have difficulty showing a high level of income, as a result of either writing off a number of expenses, reinvesting profits into a business, or being slow in lodging their tax returns.
Borrowing tips

Borrowers wishing to obtain a low-doc loan will normally need to satisfy three requirements:

  • Self-certify their income
  • Confirm their self-employment status (if appropriate) – usually with a registered ABN or accountant’s letter
    Have a clean credit history and good repayment record for existing or previous loans.
Borrowers that have an impair credit history

There are still solutions for Borrowers that have impaired credit history with specialist lenders active in this market place. Low Doc Loan options are available for home buyers and investors. These lenders are able to access Prime, Near Prime and Specialist loan facilities to secure loans at reasonable rates.

Other Lenders step up

With Commonwealth Bank exiting the marketplace for low doc loans other lenders are expected to fill the gap and that is certainly the feedback the Cashflow Recovery team is getting from the marketplace and our lender panel.

Do you need help with your home loan?

At Cashflow Recovery we know how the banks work, and can help you to apply with a lender that doesn’t credit score or who can accept your situation.

Please call us on 1300 885 244  or enquire online and one of our mortgage brokers will give you a call to discuss your options.



The information provided in this website is General Information only, so does NOT take into account your objectives, financial situation and needs. Before acting on any information contained in this website you should consider the appropriateness of the advice having regard to your objectives, financial situation and needs.

Cashflow Recovery helps individuals, families and businesses with strategies and solutions for home loans, to boost Cashflow, Working Capital and Finances quickly and easily. Our solutions help create income, acquire assets, boost sales and reduce costs.  Westbridge Securities Pty Ltd trading as Cashflow Recovery Authorised Credit Representative No#492799 of Mortgage Australia Group Pty Ltd Australian Credit License No# 377294