Low doc loans are a type of home loan offered by financial lenders that are targeted at the self-employed and business owners who do not have all of the paperwork required to apply for full doc home loans.
Low doc loans generally have a loan-to-value ratio (LVR) of between 60-80 percent. This means that you can only borrow between 60-80 percent of the property value and have to outlay the rest as a deposit.
Who they suit
- Small businesses
Low doc home loan types
- Line of credit
What paperwork is actually required?
While you will not have to provide traditional forms of paperwork like tax returns and pay slips you will be asked to complete a declaration confirming your income and that you can afford the cost of the loan.
The basic requirements for applying
- Provide a self-certification confirming you can afford the loan
- Confirm self-employment status by providing proof in the form of an ABN or a letter from an accountant.
- Provide a clean credit history and good repayment record.