Low Doc Loans

No or little proof of income?  Are you self-employed or a contract worker?  Believe it or not, you can get approval for a home loan.  Just talk to a Sydney Mortgage Broker.

Traditionally aimed at self-employed borrowers, low-doc home loans present more risk for the lender, and thsi means there is extra cost for the borrower.  Interest rates can be fixed or variable, and can be used to borrow up to 80% of the property.   Your lender will charge lenders mortgage insurance, and perhaps even a higher interest rate.  For self-employed borrowers, seasonal workers, as well as customers with no proof of income, who struggle to gain approval for the usual loan types are msot likely to benefit from these loans that require less documentation or in some case, no documentation of your income.  The loan works the same as a regular home loan instead you need to show less documentation.

A low-doc loan still requires some evidence of income such as back statements or tax returns etc, while a no-doc home loan works by self certification.  A statement signed by you declaring your income is accepted by the lender.  Mortgage brokers will be able to help explain the process further.  Borrowers applying for a low-doc or no-doc home loan will need to have a clean credit history.

Advantages
Many borrowers find themselves without enough proof of income due to being self-employed, seasonal work employee, or because they have recently moved to Australia.  These loans products give some customers, who for whatever reason cannot disclose their income in full, the chance to obtain a mortgage.  You may be able to talk to your lender about a lower rate or ask the lender to waive some of the fees such as lenders mortgage insurance if you have a large deposit.

Considerations
Higher mortgage rates are usually applied to these loans, depending on the perceived level of risk by your lender.  Lenders Mortgage Insurance and higher interest rates can quickly add up so it is important to do your research before committing to any loan.  Fees will be attached to have a low doc mortgage and you will also need a clean credit history.   Often, low doc home loans will have a short initial period, some just a year, which means that the lender will require you to refinance at the end of the term.

These loans are best suited to borrowers who are unable to provide full financial documentation to obtain a regular home loan.  To talk to a local mortgage broker about low doc home loans, call us.