Low Doc Home Loan

What is Low Doc or Low Documentation home loan

A low documentation (Low Doc) home loans is a home loan for borrowers who are self-employed and are not up to date with their financials and or tax.  Applicant must have a clean credit file.

There are several reasons why clients apply for a lo documentation loan, but the main reasons are they have complex business structures or are not up to date with their taxation obligations. The most common reason is that many self employed borrowers do not have to do their tax until May of the following year, so they are technically always behind.

Advantages of a Low Doc Home Loan

The loan is usually approved if the borrower meets the following criteria:

  • Self employed with an ABN for two or more years;
  • 20% deposit; and
  • Clean credit file (not always required, but then becomes a specialist loan)

Disadvantages of a Low Doc Home Loan

  • Usually requires a minimum 20% deposit;
  • Interest rate is slightly higher.
  • Borrowing amounts are usually capped around the $1.2m

Contact your qualified lending experts today, to guide you through your lending journey.