Alt-doc

Is an accountant's letter enough for an alt-doc loan?

Some products accept an accountant declaration, but it must satisfy detailed eligibility and consistency checks.

Short answer

An accountant's letter can be a valid income document for some alt-doc loans, but it is not automatically sufficient on its own. The lender sets the wording, accountant eligibility, recency and supporting-document requirements. It still assesses the applicant's credit, liabilities, expenses, business history, property and ability to repay.

The accountant must verify a supportable figure

An accountant places professional weight behind the declaration and may need to review current records before signing. They are not expected to repeat an income amount chosen by the borrower. If the figure conflicts with statements, BAS or known debts, the lender can request more evidence or decline it.

Use the selected lender's current template.
Confirm the accountant meets qualification requirements.
Keep the declared period and income definition clear.
Reconcile the figure with business activity and expenses.

Alt-doc still requires responsible assessment

Identity, credit history, living expenses, liabilities, loan purpose and security are assessed just as they are for other loans. The alternative document changes how income is verified, not whether repayment capacity matters.

What the letter may need to address

Depending on the lender, the form may ask how long the accountant has acted, the business entity, trading period, gross or net income and whether the business is solvent. Some products combine the declaration with a statement of financial position, ABN evidence or bank statements. Do not reuse a letter prepared for another lender because definitions and declarations differ. Obtain the current form only after a suitable product and pathway are identified.

Why an accountant may decline

The accountant may not have current information, may not be willing to estimate ongoing income or may consider the lender's declaration broader than the work performed. That is a professional decision, not an obstacle to work around. Alternative evidence such as lodged BAS or business bank statements may be available under another product. Never pressure an accountant to certify a figure that cannot be supported or seek a new accountant solely for a more favourable letter.

Consistency remains the main test

The declared income should make sense against turnover, industry margins, account credits, tax obligations and existing business finance. Large transfers between accounts are not new revenue. Gross sales are not personal income. Prepare a simple reconciliation showing how trading revenue becomes profit available to the borrower. If the lender asks for additional evidence, respond with complete records rather than treating the request as proof that the alt-doc pathway has failed.

Questions to ask before you proceed

Exactly which alternative documents and trading-history period does this product require?
How do the rate, fees and maximum LVR compare with suitable full-doc options?
What evidence would be needed for a future full-doc review, without assuming it will be approved?

Key takeaway

An accountant's letter can support an alt-doc application only when the product accepts it and the figure is professionally supportable.

Official guidance: Pepper Money: Alt-doc documentation

This is general information, not personal financial, tax or legal advice. Lending criteria, fees and eligibility vary.

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