Australian loans are composed of many different loan types!

One widely popular loan type is the Low Doc loan…Low Docs are still widely available in the Australian mortgage marketplace!

Low Doc (lo doc) loans are simply for those applicants who are self-employed but cannot provide the usual 2 years financial statements and tax return requirements that Lenders require under a normal fully documented home loan…

Benefits

- The major benefit being that self-employed applicants have access to lending facilities without needing to provide full documentation with regards to income

- The interest rates should be comparable to that of full doc loans

- The product features are similar to that of full doc loans

- Quick and much easier than providing financials and tax returns

Setbacks

- Maximum LVR is usually 80% (there are lenders who offer higher LVR’s however usually at a much higher interest rate or fee)

- Lenders will also charge a fee for borrowing between 60% and 80% (this will be called mortgage insurance)

-Lenders are recently also requiring trading statements (BAS) to verify income, almost defeating the purpose of having a low doc policy. *mortgageGURU can get a low doc with accountants letter instead of BAS

However, since the GFC,  Low Doc policy has definitely tightened…most lenders will now ask for BAS (trading statements) to back up the certified income figure the applicant has signed…this can provide difficulty for applicants especially if they have had a poor recent quarter of trading…

MortgageGURU specializes in Low Doc

I have access to a great Lender with the best low doc policy going around…

- No BAS required (only accountant letter as well as the usual requirement of 2 years ABN held, or 1 year if the LVR is 60% or under)

- Fantastic interest rates for LVR under 60% (currently as low as 7.03% at time of writing)

- Interest rate only slightly higher than a good variable rate for borrowings between 60%-80%

- Construction loans also available

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