Have you had difficulty getting a home loan?

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Low documentation home loan (Low Doc) solutions are designed to suit self-employed customers and small business owners. Low doc loans allow you to apply for the finances you need without the financial statements or tax returns that are usually required.

Low doc home loans are now provided mostly by non-bank lenders up to 75% or sometimes 80% of the property valuation. As the typical financial statements are not required, the lender usually relies on you to estimate your income so that they can then make their lending assessment based on their usual credit terms and conditions. This may include checking your bank statements for income and expenses and requesting an updated registered valuation, through an approved valuer. The valuation is a key requirement of Low doc home loans and often the lender will want to meet you personally at the proposed security address.

A Low Doc Loan can be for a short term basis (12 – 24 months) allowing you time to get your financial statements from your accountant in order to show a more healthy income. These short term options can involve monthly interest payments or have repayments included or added to the loan. Longer term low doc home loans also exist usually with the goal of making regular repayments over a number of years allowing you to switch to a more mainstream product with a lower interest rate.

It’s important to work with your mortgage broker on a repayment plan as low doc home loans do attract a higher interest rate. If you are self employed or if a bank has rejected your loan application before then I may be able to assist review alternative low doc options for you whilst ensuring that your short term and long term financial goals are considered.

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