Low Doc Loans
Low Doc Loans are a great solution for the Self Employed Australian.
Unfortunately there are many Self Employed Australians who due to their circumstances do not have the documentation they need to apply for a prime loan through a Bank. Up until relatively recently these people were left unable to finance property or business assets.
Today thanks to Low Doc Loans Australians who are Self Employed are able to obtain a low doc home loan to purchase a home, refinance a home, buy or refinance a commercial property with both clean credit & bad credit options available.
To find out which Lender has the right low doc loan for your circumstances complete our online fact form or call 1300 791 329 and talk to one of our Low Doc Mortgage Brokers.
Are Low Doc Loans still available?
Low doc mortgages are a great solution for Self-Employed Australians who do not have pay slips to provide a lender. Many people who are self employed will find that this kind of low document loan to buy a property or obtain cash out is right for them. If you have recently started out in self employed employment and do not have 2 years of lodged accounts to provide evidence of your income or maybe you are self-employed and have a complex business structure, or your Tax Returns are not up to date, or your income has increased since your last Tax Return, then a Low Doc Home Loan may just be the answer for you.
Why choose us?
- We do all the running around for you, saving you time and making the task of finding a home loan easy and less confusing.
- We will match you with a Low Doc Loan to suit your needs and objectives.
- We provide you with a written credit proposal document for your protection which discloses all commission and payments received.
Low Doc Loan requirements
For a low doc loan you will need to provide the lender with a statement confirming your income generally certified by your accountant or Business Bank Statements or BAS Statements or a combination of above to support your statement of income. Compared to full doc, these low doc mortgages generally carry a higher interest rate and are available only at lower Loan Valuation Ratios (LVRs) compared to Prime Loans. It is recommended that you refinance to a full doc loan once you have completed your Tax Returns.
Either of these documents can be used to verify your income on a Low Doc Loan:
- An Accountant letter confirming income after add-backs and before Tax.
- 6 to 12 months of Lodged BAS Statements from ATO Portal.
- 6 to 12 months of Business bank statements which confirm income and expenses.
- Ongoing Contracts for Self Employed Contractors.
- Old tax returns (over 24 months) in combination with current financial statements
What are Low Doc Loans?
Low doc loans are specifically designed for Self-Employed Australians who can’t get loan approval from a traditional bank.
So, if you are self-employed with an income that can be substantiated using documentation other than 2 years of lodged Tax Returns then a Low Doc Loan might just be the solution you need.
We are able to lend to 85% LVR on a low doc basis for a purchase and up to 80% LVR for a refinance which includes unlimited cash out. Our Low Doc Home Loans are also available for Bad Credit Home Loans
Low Doc Mortgages service Sydney, Newcastle, Woolongong, Canberra, Brisbane, Gold Coast, Sunshine Coast, Cairns, Melbourne, Gelong, Hobart, Launceston, Adelaide, Perth, Darwin and major Cities and high population Towns throughout Australia.
Got a question for Low Doc Mortgages? We’re here to answer.
Every lender has different policies, however there are some standard criteria for most lenders.
- Length of ABN / GST registration: You must have an ABN that has been registered (and possibly GST registered if sales are over $75,000) Most Lenders require ABN to be registered for 2 years. We have lenders that will accept an ABN registered for 6 months.
- LVR: Some Banks will accept low doc loans up to 60% LVR at standard rates, and some will consider up to 80% LVR on Purchases. Generally above 60% for refinance or cash out we will need to apply through a specialist lender.
- Reasonable income declared for the business: Lenders look to see if income and current assets are in line with type of Business and age of Applicant.
- Clean credit: Prime Lenders will not approve a low doc loan with any problems with your credit history. We have Specialist Lenders that will lend to 90% with credit impairments
- Security: Funders may take a risk on the applicant but not on the security. Properties that are in non metro or low regional population arrears or unique, in disrepair or difficult to sell are usually not accepted.
- Cash out: Most Funders will not allow cash out above 60% LVR and require proof of how the loan funds will be used. We have Specialist Lenders that will allow cash out to 85% LVR.
- Debt Consolidation: Most lenders will not refinance an existing loan to Consolidate Debt above 80% LVR. We have Specialist Lenders that will allow Debt Consolidation to 90% LVR
Our low doc home loans require as a minimum 15% deposit contribution plus costs such as stamp duty and fees from the borrower.
Unfortunately the risk rate will be determined by the Self Employed applicant and not the risk rate of the prime borrower.
Yes, low doc home lenders will not let you buy in particular areas. These areas will usually be deemed to be high risk areas that may have a low population or high risk of default.
Yes, assuming you have made all the repayments and that you provide your tax returns as proof of income you can refinance to a prime lender.
Yes, due to changes in the NCCP Act, lenders will only accept self-employed borrowers for their low doc loans if they are ABN registered and GST registered if income is over $75,000 p.a.
Yes, your credit history can affect your loan application as any adverse credit listings such as defaults or bankruptcy will result in your loan being declined by most lenders. We have options for Borrowers that have paid or unpaid defaults / judgements and areas at higher risk rates.
Yes, if the lender required an accountant’s letter to verify your income then they are very likely to call your accountant to confirm the letter and your declared income and tax position.
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