Low-Doc With Bank Statements
When you are applying for a low-doc loan, some lenders may require you to provide more documents to verify your income. The most common and simplest way is to providing bank statements of your business account. However, not all lenders accept this type of document. For example, the major banks do not accept the bank statements as evidence of income.General criteria:
- Employment: you must be self employed
- ABN: your ABN must be registered for at least 1 year.
- GST: you must be registered for GST for minimum 6 months.
- Statements: 3 to 6 month bank statements are required, depending on the lender that you choose.
- Loan amount: you can borrow up to 80 per cent of the property value.
- Credit history: you must have good credit history. However, small adverse on credit file can also be considered.
- Property: the property must be in an acceptable location and must also be in good condition.
- It is a requirement for all lenders to collect evidence of income for low-doc loan. The idea of using the BAS statements is to verify the income of the borrower and reduce the risk associated with the low-doc loan.
- ABN & GST: Most lenders require your ABN and GST to be registered for minimum 2 years.
- BAS statements: Most lenders require 4 quarters’ BAS statements.
- Credit history: your credit file must be clear and you must also pay your debts on time.
- Loan amount: you are allowed to borrow up to $1,000,000 or 80 per cent of the property value.
- Genuine savings: savings history is required if you borrow more than 60 per cent of the property value.