Low doc home loans
Low Documentation, or Low Doc, home loans are loans which require very little or no income documentation to get approval. The less documentation you provide, the higher the interest rate on the loan is likely to be.
Assistance with your low doc home loan
If you need help with your low doc home loan application or to talk to a mortgage broker about the home finance options that are in your best interest call us on 13 LOAN ( or direct on +61 2 9249 3739) or email us the form on this page and we will contact you within 2 business hours.
Low doc home loans are typically used by borrowers who are self-employed, have variable income or do not have tax returns or financial reports with which to prove serviceability. You may be able to use a low doc loan for residential, investment or business purchases.
Major lenders will usually insist on a Loan to Value Ratio (LVR) of at least 80 per cent, however some specialist lenders may accept an LVR of up to 95 per cent.
Most lenders will require you to take out Lenders Mortgage Insurance for a low-doc loan with an LVR greater than 60 per cent.
Prior to the sub-prime crisis in the US, these types of loans were expanding to offer a wider range of features, however in recent times this area of the market has become somewhat stricter so check with your local mortgage broker which features are available for the loan you are looking at. Despite this, low-doc home loans are a popular product and you may still be able to access a low-doc loan with a fixed or variable rate, at competitive interest rates and with a range of features.
Documentation requirements for self-employed borrowers
Some lenders have recently introduced an increased requirement for documentation prior to granting approval for a low documentation home loan. Depending on which lender you borrow through, you may now be required to supply:
- 12 months worth of Business Activity Statements (BAS)
- An Australian Taxation Office (ATO) Lodgement Reference Number
- Account statements for the past 3 months, showing taxation payments
Not all lenders require this documentation so talk to your local Loan Market mortgage broker for an overview of the options available to you.
For more information on low doc home loans
There are many variations on this type of loan, so for a full overview on the various options available to you or the home loan that is in your best interest, talk to your local mortgage broker and we will return your enquiry within 2 business hours. Or call us at any time on 13 LOAN or direct on +61 2 9249 3739.
