by Low Doc Loan offers supple financing solutions for freelancers or self-employed individuals. These types of loans are designed for consumers who have income as well as assets but are not able to show the common verification documentation such as financial statements and sometimes tax returns. These Loans can be taken with a wide range of our Home Loans as well as the Viridian Line of Credit, where certain structures and aids of the chosen loan type will apply for that reason.
What Are Low Doc Home Loans?
A Low Doc Loan is typically a home loan that does not need the common documentation to prove the income of the borrower. It is popularly known as paperless loans, low documentation loans need minimal documents to prove borrowers’ income, making them a perfect product for self-employed people or freelancers who may not have regular proof of income, such as tax returns and salary receipts.
The Benefits of Low Doc Loan
Allows self-employed clients to borrow money at a competitive rate, although they cannot deliver the usual up-to-date income verification documents, such as financial statements, tax returns, and so on.
Eligibility Criteria for Low Doc Loans
- Clients should be self-employed in the same business for a minimum of one year as well as be registered for Goods and Services Tax (GST).
- Clients should submit their Company Certificate and Business Activity Statements or ABN verified by the ATO, for the last twelve months.
- Clients must sign a Low Doc statement that the Bank will provide.
Low Deposit Premium or Lenders Mortgage Insurance
Low Deposit Premium or Lenders Mortgage Insurance can apply depending on the conditions of your loan, for example – when there is amplified risk associated with a mortgage loan.
- Lenders Mortgage Insurance is a single insurance premium considered to protect us against the possible loss we may suffer if you are unable to repay your loan. It is not a bank commission or an establishing commission.
- Low Deposit Premium is a single bank commission that reflects the risk associated with a low-deposit loan. But, it is not an establishing commission.
If we ask you to pay Low Deposit Premium, we don’t ask you to pay Lenders Mortgage Insurance. If this may apply to your loan, your lender will let you know.
Applicable Loans
Low Doc Loans are available on –
- Standard Variable Rate
- Fixed Rates
- Economizer/tariff saver
- Viridian Line of Credit
- Interest on advance loans
Excluded Loans
Low Docs Loans are not available on:
- Special 3-year rate saver/economizer
- 1 year of guaranteed rate
- Variable rate with a 12-month discount
- Home unlock loan for seniors
- Additional mortgage loan
- Free variable rate
Conclusion
Before you apply for a Low Doc Loan, it pays to sit down with an expert mortgage broker to calculate your net income and how much loan you can really afford to pay back on a regular basis. Doing this may help you avoid dissatisfaction, as well as you may also discover more lenders or product options you weren’t aware of before.
