Low doc home loans are for borrowers who are self-employed or unable to prove their income through traditional means.
This is the only way that you can borrow without recent tax returns or financial statements.
You may have already found that choosing the right low doc home loan can be difficult as lenders have different requirements and interest rates.
Low doc loans are a higher risk to financial institutions, so they tend to place greater restrictions on this type of loan.
As it stands, there are very few lenders that offer low doc solutions while others have significantly increased the interest rates they are applying.
Below is a list of potential issues to look out for:
Higher interest rates: This will mainly depend on the lender and what sort of verification or supporting documentation that you are able to provide. Some of our lenders offer the same low rates as they do for full documentation home loans.
Larger deposit: 20% of the purchase price is normally required although some lenders require less.
LMI: Mortgage insurance is normally applicable if you borrow over 80% LVR (80% of the property value) also specialist lender call it Risk Fee.
You may also need
If you already have investment property(ies):
Yes. If you want to pay off the loan early and you have the sufficient fund available with you, loan can be paid off early.
Yes. Refinancing option is available if you want to replace existing loan with other Loan to get the better interest rate or to cash out for a required purpose by using equity on the existing property.
Whenever you are in need of financial support, you can contact your mortgage broker to discuss the available options.
We have our head office located in Edmonson Park in Sydney. However, we help clients who need financial assistance anywhere in Australia.
To get a quote, please provide your details below and one of our team members will contact you