Loan doc home loans are specially designed for self-employed people. Buying a property involves a lot of investment, and one has to apply for a loan for this. A self-employed individual can now easily apply for low doc home loans and fulfill their dream of buying a home. This is the only way to take a home loan without any income proof or tax returns. For low doc home loans, you need to submit your BAS or business account statement, and you must show your repayment ability to the lender. But there are few lenders available who do not require such documents.
Here, you can find some benefits of Low Doc Home Loans:
• You do not need to submit your last one-year BAS or business account statement.
• You are also required to submit your payslips for such loans. If you do not have such payslips, then you can submit your income declaration to avail low doc home loans.
• If you have already a home loan and you are looking for refinancing, then you can choose a low doc home loan. There are few lenders available that can consider your applications.
• You must be self-employed for at least 1 year.
• You are still confused about your loan amount and EMI? Do not worry; you can use the online calculator, at free of cost and most of the lenders offer this facility through their website. You just need to put your loan details and you can calculate your EMI and other associated charges.
But low doc home loan is not “No doc home loan”, and you need to submit minimum documentation. For example, if you have ABN that had been registered for over two years, then you can submit the same along with your GST details. There are a different set of regulations and you need to check such norms with the lenders. For example, in Australia, banks have already implemented some lending criteria after the Global Financial Crisis (GFC) and you can check their NCCP Act to know more. No bank can provide a loan without your income proof and you cannot apply for a home loan in Australia if you do not have payslips or tax returns.
Benefits of Low Doc Home Loans:
On the other part, you can find some private lenders who can provide low doc home loans without your income proof and you can apply for a home loan with self-declaration.
Following benefits of Low Doc Home Loans:
• Fastest approval
• Online application and verification process
• Up to 80% finance on total property value
• 100% finance is also available at a higher rate of interest
• Loans without collateral
• Low-interest rate
• Fixed or flexible rate of interest
• Customize repayment schedule
But you cannot find the following features in Low Doc Home Loans:
• You cannot include a third party like parents as a guarantor
• You cannot avail introductory interest rates and repayment breaks
• If you want to take a repayment break, then you need to apply for the same to the lender’s credit department. They will review your application and sanction your request by taking a new property on the mortgage.
Who can benefit from a low documentation loan?
Low doc home loans are specially designed for self-employed people. Apart from that, solvent traders can show their business account statements, but partners cannot show such documents for their home loans. If it is a partnership firm, then a partner cannot disclose or use the business account statement for taking a home loan. In this case, they can apply for the low doc home loans.
Even there are some businesses which have grown significantly in recent years, but their current business status is not showing on their credit history. They can apply for such low doc home loans. To know more, you can search for such loans online.
Make sure that you do the due diligence before applying for a loan application, assess them on parameters like fees, processing fees, interest rates, and then apply for a loan.