From The Australian:
LOW-DOC loans — or “liar’s loans” as they are known in the US — have become even easier to obtain as lending standards loosen, with non-bank lenders aggressively spruiking the controversial products by slashing interest rates and offering cashback giveaways and cruises.
The loans, which do not require borrowers to provide tax returns and are used by tax-avoiding small business owners, have traditionally carried interest rates substantially above standard loans.