Low Doc Loans Australia – What You Need to Know
Low Doc Loans Australia
If you’re looking for a loan that doesn’t require a lot of documentation, you’ve come to the right place. Low doc loans Australia are ideal for small business owners that don’t want to deal with a long list of documents. You can use low doc loans to restock supplies, cover unexpected costs, or expand your business. These loans don’t require a lot of documentation and can be approved in a matter of hours.
Whether or not you’re eligible for low doc loans depends on your credit score and income. Your lender may not ask for proof of income. Generally, you can borrow 80% or 70% of the value of your home. However, if you own a business with your partner, this can make the loan application more complex. Also, if you’re planning to stay in your current home for a long time, you may want to opt for a low doc loan.
You can get low doc loans Australia for self-employed people, contractors, or investors who don’t have the time or paperwork to complete three years’ worth of tax returns and financial statements. Typically, you’ll need to provide an accountant’s letter verifying your income and business information. These documents will help the lender assess whether you’re eligible for a low doc loan. It’s also important to remember that many lenders require that you have a registered business name and an Australian Business Number (ABN) to qualify for a low doc loan.
Many Australian lenders have tightened their lending criteria since the GFC hit the economy. While Low Doc Loans have become harder to get approved, there are still plenty of lenders offering them. Before the GFC hit, self-employed people could still qualify for a home loan if they had a business with a registered tax file. You would need to provide self-certified income documents, as well as a 20% down payment.
Low Doc Loans Australia – What You Need to Know
Low doc loans Australia can come with several advantages. Many of them offer interest only repayments or principal and interest repayments. Interest only repayments will have a lower monthly repayment, but your repayment will still be higher than the original principal. Principal and interest repayments will be higher than monthly repayments on a fixed rate loan. A fixed interest loan may offer lower interest rates, but the repayments will fluctuate when the interest rate switches to variable.
Applying for a low doc loan in Australia is similar to applying for a standard home loan. The application process can be completed online, by phone, or in a bank branch. To make the application process go more smoothly, have all of your documents ready. Different lenders have different criteria, so make sure to research the terms and conditions of each low doc loan you’re considering. If you’re not sure which type of loan is right for you, speak to a mortgage broker or a bank.
Self-employed individuals can also apply for low doc loans. Self-employed people typically don’t have the documentation required for a traditional loan. With low doc loans, all you need is a written declaration proving your ability to repay the loan. In some cases, you may be able to get approval if you have good credit and a long history of paying debts on time. You can also save money on Lenders Mortgage Insurance by paying a substantial deposit.