In this fast growing market, the Low Doc Home Loan has seen an incredible increase in its usage. Generally for the self employed client & simply, this is where the borrower is not required to provide the lender with the financial statements of the business if these are not available at the time of the application.
In general, the Major Lenders will only lend up to 80% of the value of the property with Mortgage Insurance. Some lenders will even assist clients with up to 90% of the value of the property under a Low Doc Loan with higher interest rates, due to the increase in risk to them.
There are varying requirements of Low Doc loans, whether you are borrowing up to 60% of the value of your property or 80%, a number of lenders are seeking comfort of income being declared, with requests for supporting BAS statements of the business. This to ensure responsible lending by the bank is undertaken.
Again, many options available, that we would love to discuss with you to ensure the correct one is obtained.