What is a low doc loan?
A loan aimed at people who cannot provide the standard documentation for a loan, usually the self-employed or new business owners with less than 2 financial years’ finance history or individuals with irregular PAYG income.
Low Doc Business Loans
Low doc business loans allow business owners to borrow money without providing the regular full documentation. This can be especially useful for new businesses, the self-employed and investors with irregular income.
Although low doc business loans don’t require the same documentation as standard loans, they can still be flexible and competitive. No two low doc loans are ever the same and vary enormously based on the individual’s circumstances, assets and security. Finance Warehouse has access to all the mainstream low doc loan lenders as well as some 2nd tier, less stringent lenders, for individuals who require a little more flexibility.
Business loans are assessed on a case by case basis and your allocated broker will take the time to analyse your individual situation and business goals and place you with a lender that suits your requirements.
Low Doc Home Loans
Low doc home loans allow borrowers to purchase property without the regular full documentation.
Borrowers will still need to verify their income with supporting documents. The main documents required to verify your Self Employed income are;
- 12 months BAS statements.
- Accountant Letter verifying income
- Bank statements confirming regular deposits
- 2 years concurrent tax returns
How much can you borrow?
Low Doc loan to value ratios (LVR) will impact your borrowing limit along with the loan serviceability. The major banks typically will not lend more than 60% of the asset value although this figure differs among lenders. 2nd tier non mainstream lenders will go allot higher than the 60% offered by the major banks and are very comfortable around the 80% mark.
There are lenders in the market who lend greater than 80% LVR however requirements for this type of lending do increase as does the interest rate applied.
Call us today on (02) 8021 2840 and have a licensed Finance Warehouse broker work one on one with you through your situation, tailoring options your unique situation requirescontact us (02) 8021 2840