Our Lending Specialists Help You Choose Low Doc Home Loans

Low-documentation or low-doc loans are for people – generally the self-employed – who have difficulty getting the documentation together that is required to get a traditional home loan.

Traditionally, the interest rate offered on these types of loans was higher than for the standard variable rate. While lenders have various methods of establishing whether they will lend someone money, there are some major differences between mainstream and low-doc loans.

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Difference Between Standard and Low-Doc Loans

• Low doc home loans do not require traditional proof of income such as company financials or tax returns.
• Borrowers seeking a low-doc loan generally complete a declaration that confirms they can afford the loan. This is known as self-certification.
• Low-doc loans tend to be more attractive to self-employed people or full-time investors who may have difficulty showing a high level of income, as a result of either writing off a number of expenses, reinvesting profits into a business, or being slow in lodging their tax returns.

The Main Documents That Can Be Used to Verify Your Income Are:

• 12 months’ BAS statements showing a high turnover.
• Accountant’s letter verifying your income.
• 6 to 12 months Business bank statements showing a high turnover.
• Old tax returns (over 24 months).
• Interim financial statements.

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