Are you looking for a home loan but are an investor, self-employed, or have low documents? Our low doc home loans are ideal for those who cannot provide conventional income proof for standard home loans.
Low Doc Home Loans
Low-doc home loans, also known as low-documentation home loans, require less documentation than standard home loans. Our low doc mortgage is an excellent alternative for full-time investors or self-employed borrowers who are unable to provide two years of tax returns or financial records. These home loans have a self-verification process where applicants sign a declaration certificate about their earnings.
Features Of Our Low Doc Home Loans
Financial institutions and lenders offer various features on low doc home loans. Some of the common features include:
- Offset Account
The offset feature lets you offset the amount of your low doc mortgage against the balance of another bank account. This helps you reduce the interest on your loan and pay off your loan faster. - Additional Repayments
You can make extra repayments on your low doc mortgage. However, some lenders may charge a fee or limit the number of additional repayments. You can reduce your low doc home loan interest by making additional repayments. - Redraw Facility
You can redraw the additional payments you have made on your low doc mortgage. This feature helps you when your cash flow is tight. - Interest-Only Repayments
This feature allows you to pay only the interest on the borrowed amount for an agreed-upon period. You do not make any payments towards the principal. - Flexible Rates
You can choose a low doc mortgage with fixed or variable interest rates. You may also split your loan to take advantage of both types of interest rates. - Loan-to-Value Ratio
Most lenders offer low doc home loans for up to 60% of the property value. However, if the mortgage amount is more than 60% of the property value, lenders may require LMI.
Benefits Of Our Low Doc Home Loans
- Less Paperwork
You require minimal documentation for the low doc home loans. You self-verify for the mortgage by signing a Borrower Income Declaration Form as proof. - Shorter Approval Time
The approval time for these loans is usually shorter. Approval also depends on whether you are self-employed or employed by a firm. - Better Terms You can negotiate for better terms if your credit score and annual income are good.
- Income Verification
You require less financial documentation in low doc home loans compared to full doc home loans. A borrower has to self-verify by signing a Borrower Income Declaration Form as proof and provide alternative income verification documents such as accountant’s letter, BAS or bank statements. - No Credit Scoring Our team of low doc mortgage brokers assesses each application on a case-by-case basis, taking into consideration each applicant’s unique circumstances.
Uses of Our Low Doc Loans
- Property Investment
You can purchase a residential property or property for investment purposes. - Refinancing
You can use a low doc mortgage to refinance an existing mortgage to secure better terms or rates. - Renovation
Our low-doc home loans can be used to fund renovations or upgrades that will enhance the value of your property. - Debt Consolidation
You can consolidate your debts into a single low doc home loan.
Who Should Apply for Low Doc Home Loans?
Low doc mortgages are suitable for the following borrowers:
- Business owners
- Investors
- Self-employed people
- Sole traders
- Freelancers
- Contract workers
Ready To Apply for Low Doc Home Loans?
Low doc home loans are worth considering if you have a steady income and good credit score but lack paperwork. At Excel Financial Solutions, we can help you find the most suitable lender and negotiate the terms on your behalf. We can also help you find the best deals that suit your circumstances. Contact us today to learn how we can help you access the best low doc mortgage.
FAQ's
A major difference between a low doc home loan and a standard home loan is the documents the lender requires to prove your income and capability to repay the loan. A low doc loan is usually for self-employed people and attracts a higher interest rate and deposit.
Yes, you can switch from a low doc loan to a standard home loan if your financial situation stabilises. However, you will have to provide the standard documentation required for a regular home loan. The lender will also reassess your financial circumstances before refinancing a home loan.
Most lenders cap the borrowing capacity at 60% of the property’s value. However, if you provide Lenders Mortgage Insurance then you may borrow more.
The deposit amount varies from customer to customer and depends on a borrower’s credit history and the amount they intend to borrow.