LOW DOC LOANS
Low Doc loans are commonly used for borrowers who do not have the proof of income required to meet the lenders requirements. Generally speaking, those who are self employed will use a Low Doc loan.
Low Doc Home Loans are usually seen as higher risk borrowers by lenders because they are unable to verify their income. This can cause higher than average interest rates to be applied to the loan and will sometimes come with restrictions with the maximum loan to value ratio that the bank will lend to.
Typically, a self-employed borrower will need to provide some or all of the following documents to confirm that their income is valid:
- Proof of ABN and or GST registration
- Personal Tax Returns
- Business Activity Statements (BAS)
- Accountants Letter
- Business Account bank statements
It is best to sit down and discuss all of your loan options with one of our experienced mortgage brokers before making your final decision. In some cases you may not need to go down a low doc loan path as we have access to 30+ lenders and niche products which your bank may not be able to offer you.