Alt-doc home loans tipped to grow as more Aussies declined for standard home loans

The rise of freelancers, gig workers, contractors and business owners has reshaped the Australian workforce, with approximately 5.1 million people now working outside traditional employment structures. Yet, for many of these individuals, securing a home loan can be challenging unless they consider an alt-doc loan.
 

Julian Finch, leading money expert, mortgage broker and founder and CEO of Finch Financial, highlights the importance of alt-doc loans in today's evolving employment landscape.
 

With decades of mortgage brokerage experience, Finch has helped thousands of Australians get their loan applications approved, with Finch Financial achieving some of the highest approval rates in the country, often securing approvals within minutes.
 

"Everyone is familiar with a 'lo doc' loan. These loans are for people who don't have the employment history income or appropriate credit history to support traditional loan applications," Finch said.
 

"Due to the changing nature of employment structures, the latest type of loan to evolve in popularity is the 'alt-doc' loan.
 

"Effectively it is a traditional loan with greater flexibility to incorporate non-traditional employment finance history information."
 

What is an alt-doc loan

"An alt-doc loan which stands for alternative documentation loan, is designed for individuals who don't receive regular payslips but still have a stable income," Finch said.
 

"Unlike traditional home loans that rely on standard PAYG income verification, alt-doc loans allow borrowers to demonstrate their financial position through alternative means, such as business bank statements, tax returns and accountant declarations."
 

Who needs an alt-doc loan?

● Self-employed individuals and small business owners
● Freelancers and gig economy workers
● Contractors and consultants
● Investors with multiple income streams

How to prepare for an alt-doc loan approval

"This type of loan requires you to have an ABN, so if you are planning to purchase in the future and have an idea that you want to do something like this, registering an ABN sooner rather than later is very helpful. ABNs are free to register too," Finch said.
 

"It is really important to keep your financial records in order. Lenders will assess income stability through business bank statements, tax records or BAS statements. Ensure these documents are up to date and well-organised.
 

"Maintain a strong credit profile. While alt-doc loans are flexible, a good credit score improves your chances of securing better loan terms.
 

"Demonstrate a stable income flow. Providing at least 6-12 months of consistent income records will strengthen your application.
 

"Reduce existing debt where possible. Lowering outstanding debts and credit card limits will improve your borrowing power."
 

Finch emphasised that it is important to work with an experienced finance expert.
 

"An experienced broker or finance expert who deals with alt-doc loans can guide you through lender requirements and negotiate the best terms on your behalf," Finch said.
 

About Finch Financial Services

Based in Hurstville, NSW, Finch Financial Services has been servicing Australian families and businesses with home, personal and commercial loans as well as asset finance services since 2015. Ranked amongst the top five percent of brokerages in Australia according to data from the MFAA, Finch Financial Services is a leading brokerage and family-owned business that specialises in finding its customers loans that are tailored to their needs and goals.

https://finchfinancial.com.au/