Low Doc Loans
We’re experts in helping self employed borrowers.
For those who are self-employed, managing complex business structures or dealing with overdue Tax Returns, a Low Doc Loan could present an ideal solution for your financial needs.
What do you need to provide for a low-doc loan?
A low-doc home loan comes with fewer requirements than a full doc home loan, but you still have to provide evidence of your income. The exact documents you need will depend on the lender, but may include:
- Business bank statements
- A letter from your accountant
- Your ABN
- GST registration
- BAS returns
- Tax returns if available
Some lenders will allow you to apply for a low-doc loan with a signed declaration saying that you can afford the repayments. These types of loans usually come with higher interest rates and fees than other lowdoc home loans as they are considered higher risk.
Low doc home loans are ideal for those who are;
- Self employed for a minimum of 6 months
- Tax returns and financials are not up to date
- Have a fluctuating income
- Prefer the convenience of providing an income declaration rather than 2 years of tax returns and financials
- Have had a home loan declined by their bank
A self-employed borrower would typically need to provide proof of income using a combination of the following:
- Proof of ABN and/or GST registration
- Business activity statements (BAS)
- Business account transaction statements
- Accountant’s letter
- Business & personal tax returns
Non-Conforming Home Loan
A non-conforming home loan is a product for people who may have difficulty obtaining normal loans from banks and major lenders to purchase a home.
Standard lending criteria can be pretty strict, and your loan application may be declined if you don’t fit within those guidelines.
non-conforming home loan for:
Credit Challenges
If your credit history isn’t perfect due to past issues like bankruptcy or missed payments, or if you’re new to Australia and building credit, you may face difficulties getting a standard home loan.
Limited Savings
Even with a good income, some homebuyers struggle to qualify for regular loans because they can’t meet the required deposit.
Employment Factors
Being self-employed, working as an independent contractor, or frequently changing jobs due to industry demands may make it hard to secure a loan. Traditional lenders may see your employment as unstable, especially without recent pay slips or a lengthy
employment history.
Debt Load
Having outstanding debts such as personal loans or credit card balances could make some lenders hesitant to approve your home loan.