Low Doc Home Loans
Low Doc Home Loans are primarily designed for self-employed individuals, small business owners, or contractors who might not have the typical income documentation required for traditional home loans. Instead of extensive paperwork, these loans require less documentation, such as bank statements, BAS, an accountant’s letter, or rental income statements to verify income.
Some key points are:
- Less Documentation: As the name suggests, these loans require less documentation, making them accessible for those who can’t provide regular pay slips or tax returns
- Higher Interest Rates: Due to the higher risk for lenders, these loans often come with higher interest rates compared to standard home loans
- Larger Deposits: Borrowers might need to provide a larger deposit, which can be a significant upfront cost
- Flexible Options: These loans can be used for various purposes, including purchasing a home, refinancing, or investing
- Eligibility: Typically, you need to have an ABN (Australian Business Number) and be registered for GST. Some lenders may also require a minimum trading duration