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Lo Doc Mortgages and
Home Loans
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 Lo Doc or Low Doc
loans are those for
self-employed people who sometimes have difficulty proving
all of their income or may not have submitted their tax
returns. You are generally only required to supply the lender with a
declaration of your income.
Each lender has specific criteria for
self employed individuals and these can be generalised by the
following;
You will can only borrow up to 80% of the
properties value. Some non-conforming lenders will go to 90%
but you will have to pay a
higher interest rate.
Most lenders require you to be self employed with a registered ABN for a minimum of 2 years. There are lenders that only
ask you to certify that you are self employed with out
providing an ABN as evidence.
Borrowing 60% of the properties value eases
lending criteria where you can receive
lower interest rates and fees similar to traditional products.
Advantages of Lo Doc Loans
Substantially
lower document gathering to prove income, making the whole process
of obtaining a loan a bit easier.
Some
lo doc mortgages offer the same value as normal home loan products.
Disadvantages of Lo Doc Loans
Each lender has its own strict lending
criteria
The fees and interest rates are generally
higher than traditional loans
Higher deposit or equity requirement - at
least 20% of the properties value
For more information about
lo doc loans
contact us or call 1300 726
136
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