Among the many different loans, we will be taking a look at the low doc home loans today. As the name suggests, these loans do not require much documentation to get approved. Nevertheless, there are many other things that you should know if you are applying for this loan in Perth or Sydney.
So, let’s dive into the facts about this type of loan.
The Low Doc Home Loan – What is it?
If you are a self-employed individual, you can apply for low doc home loans in Perth where you do not need to submit too many documents such as the payslip that you would have to usually do for getting approval of any other type of loan.
So, basically, the advantage of low doc home loans is that if you are worried about the fluctuating income that you have as a small business owner, this type of loan can seem like a respite. However, some lenders might want records of the tax that you have filed for the last two years along with the profit and loss statements. Even some lenders might want an accountant’s letter that supports your financial situation.
The low doc home loans were started in the ’90s and this was primarily introduced by lenders who did not belong to any bank. They were primarily mortgage brokers and put this instrument to use for gaining extra profits. Anyway, if you wish to go for these low doc loans anyway, you might have to pay a higher interest rate.
About the ‘Documentation’ Part
We have mentioned already that if you wish to go for the low doc home loan in Sydney, you will require little documentation. These include a self-signed declaration of your income, the registered name of your business, your ABN (Australian Business Number), your last year’s BAS (Business Activity Statements) and a confirmation of your registration in the GST.
Along with what we have mentioned above, you will need to have a clean credit history. Also, you can borrow up to 80% of the price of the property from the lender. However, if you want to avoid the Lender’s Mortgage Insurance (LMI), the borrowing limit goes down to 60% only.
With the above mentioned, as a borrower, you will need to furnish the valuation of your property and you will need to be self-employed for at least a year to apply for this loan.
You will need to Find a Lender Who Provides this Loan
As mentioned above, you will need to find a lender who will provide this loan and you can do it yourself or you can approach a broker who can find a lender who provides the low doc home and construction loan in Sydney and Perth.
We recommend that you visit a financial firm if it comes to finding a lender because the brokers have good contacts in the loan industry and based on your requirements they will find the right lender for you.
Want to Apply for the Low Doc Home Loan? We Will Help
At Everyone Finance, we have a team of experts who can help you find a lender providing the low doc loan in Perth and Sydney. So, to save your time, money and energy, don’t waste your time searching for the right lender. Instead, contact us today and we will take care of the rest.