How Can Low Doc Loans Help You?
What Are Low Doc Loans?
If you’re applying to borrow money, lenders want to know that you can repay that loan.
They do this by assessing your proof of income.
But if you’re self-employed or running your own business, it’s difficult to provide these traditional documents to prove your income.
This doesn’t mean you don’t qualify to apply for a home loan. You just won’t be able to apply in the traditional sense. Instead, you can apply for a low doc loan.
You still have to provide proof of income, but you can do so through other means.
What Proof of Income Documents Will You Have to Submit?
Generally, lenders will assess your personal and business tax returns or income tax assessments. This will give them an idea of how stable your income is likely to be going forward.
Here’s more about what you need for the low doc loans process:
Other paperwork you may be asked to provide include:
your Australian Business Number (ABN)
several months worth of bank account statements
How Can A Finance Hub And Networks Mortgage Broker Help You With Low Doc Loans?
We Help At Every Stage
At finance hub and networks, we can help you at every stage of the application and guide you on how to higher your chances of getting your home loan approved.
We Compare The Market
We compare loans from various lenders to ensure you are getting the best deal.
We Do All The Paperwork
With banks clamping down on applicants with stricter lending rules, you’ll want your application to be perfect. We take care of all the paperwork!
Self-Employed Home Loan Faqs
Will I Pay A Higher Interest Rate On My Low Doc Loan?
Some lenders may charge higher interest rates if they view you as a high-risk applicant.
The Lack Of Documentation Does Provide A Slight Risk To Lenders, So Their Low Doc Loan Products Are Generally A Bit More Expensive Than The Standard Loans.
However, Not All Lenders Will. So It Pays To Speak To A Finance Hub And Networks Mortgage Broker To Find A Lender And Product Best Suited To Your Personal Circumstances.
Do I Have To Apply For A Low Doc Loan If I’m Self-Employed?
If you can prove that you have a reliable income stream and an established business, then there’s no need to apply for a low doc loan, you could apply for a standard home loan.
If you’re unsure if you have enough documentation to apply for a standard home loan, check with your Finance Hub and Networks mortgage broker – they can advise you on the best route to take.