Low Doc Loans
It’s exhausting and inconvenient to fill up a lengthy loan application form that includes a long list of documentary requirements. It is next to impossible to attach some of those requirements to your application form because if you don’t have them, then you can’t attach them. The low doc loan was invented to help loan-worthy people who do not have the necessary documentation to get a traditional loan. Low doc loans are generally for the self-employed, the small business owner, or contractors.
If you are a small business owner or self-employed, look for a loan broker who is accredited with the Mortgage & Finance Association of Australia and let them know that you require a low doc loan for business, home, car or other purpose.
Low-doc loans have become very popular over the past few years and the interest rates for them have also become nearly similar to standard loan rates.
Statistics show that low doc loans comprise around 10 percent of all mortgage loans in Australia and interest rates have recently become nearly similar to standard loans. A Low doc loan only requires the following:
• Self- certification that the borrower can afford to pay the loan
• Certification of self-employment of an 11-digit Australian Business Number (ABN) or a letter from an accountant
• A clean credit history and good repayment record for existing or previous loans.
Low doc loans are available through brokers, banks and non-bank lenders. Make sure you choose an MFAA-accredited broker or mortgage manager. Don’t forget to protect your credit reputation by keeping your debts under control and paying your loans on time. This will help you get approved faster the next time you file a low doc loan.
Courtesy of Lending Services Victoria