Lo Doc Loans

If you are self-employed, we understand that sometimes you are unable to provide full financial statements and other evidence normally required to obtain a home loan. A quick and comparatively trouble-free finance product called a lo-document loan or lo-doc loan is available for people in your position.

There are a growing range of lo-doc products on the market with many lenders offering standard and premium lo-doc loans with the choice of fixed or variable interest rates.Borrowers also get access to the normal, full range of loan features and options

When borrowing between 60-80 per cent of the property value, most lenders require you to take out mortgage insurance and many also charge a higher interest rate for these products. These rates may be reduced after a certain time period or when you are able to provide satisfactory financial statements.

The challenge is to find the best loan with the best features AND which allows you to borrow enough for your particular circumstances. That’s where we can help.

Lo Doc Benefits include;

• less paperwork - with self-certification instead of traditional financial statements
• simple application process
• can borrow up to 90 per cent of property value (but the higher the loan ratio, the higher the interest rates)
• interest rate discounts may apply after specific time period
• may be able to switch to a lower interest rate if able to supply tax returns at a later date
• lenders may not lend in high risk areas such as inner city high-rises or large rural allotments
• may require lender’s mortgage insurance, adding to the cost of the loan but also allowing you to borrow what you need.