Low-Doc and No-Doc loans are typically used by self-employed, those that have variable income or do not have tax returns. The benefit of a low doc loan is that you do not have to provide proof of your income to get approval. You do however need to self certify that you are able to make the repayments. 

The loan to value ratio assists banks in analysing your risk. The higher percentage of the property borrowed, the more likely they will start to charge additional fees such as Lenders Mortgage Insurance (LMI). Most banks prefer to lend up to 80%LVR, however some will lend up to 95% and even 100% in some cases.

LMI is charged to the borrower to protect the bank from losing their funds. This is usually charged if the borrower is borrowing more than 80% of the value of the property.