Low Doc Loans

Low doc home loans simplify the application process by requiring minimal documentation. Typically, you'll need to provide:

An income declaration: you'll need to declare your income and assets in a formal statement.

Business activity statements (bas): these documents provide a summary of your business's financial activities and may be used to verify your income.

Bank statements: providing bank statements showing your financial history is a common requirement.

Credit history: lenders will assess your credit history and score to evaluate your creditworthiness.

Once you submit these documents, the lender will assess your application and determine the loan amount you qualify for.

While low doc loans offer flexibility, lenders still have certain requirements:

1. Good credit history – Having a good credit history can increase your chances of approval.
2. Loan purpose – Low doc loans are primarily for residential properties and investment properties.
3. Loan-to-value ratio (LVR) – A lower LVR (around 60-80%) can make the application process smoother.
4. Stable income – Lenders prefer to see a history of stable income.

Pros

• Simplified application – Low doc loans require less documentation, streamlining the application process.
• Accessibility – Ideal for self-employed individuals who may have difficulty providing traditional financial documents.
• Homeownership opportunity – Low doc loans open doors to homeownership for those who may not qualify for standard loans.

Cons

• Higher interest rates – Low doc loans often come with slightly higher interest rates to mitigate risk.
• Lower loan-to-value ratio (LVR) – You may need a larger deposit due to the lower LVR.
• Limited features: low doc loans may have fewer features and flexibility compared to standard loans.