Loans under 80% loan to value ratio will not require lenders mortgage insurance. If lenders mortgage insurance needs to be taken out it can be capitalised as part of the loan or paid upfront. It is approximately 2% of the loan value. A low doc loan requirement is that you must have had an ABN for at least a year, usually for 2 years, depending on your circumstances.

The purpose of a low doc loan is to allow self employed people the opportunity to secure a loan with minimum documentation. We are open till midnight every day and offer phone support any time of the day 7 days a week. Interest rates for low doc loans are similar or slightly higher than home loan and investment loan rates.

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Home Loans Report

If you have a deposit of 20% of the loan then it might suit you to apply for a low doc home loan. A low doc loan is the same as any other home loan and the same facilities, offset account options and redraw terms apply. Home loans can be taken out as a variable rate or a fixed rate for up to 5 years.

Investment Report

Rental income generated from an investment property is taken into account when a bank calculates your serviceability. Often, only 75% of the rental income is used to calculate due to the possibility of vacancy of the property and repairs and maintenance. Rental yields can range from 4% to 6% which is sufficient to repay the interest.

Documentation Report

A low doc loan does not require the normal full documentation of tax returns and financial statements. You will require an ABN for at least one year, usually for two years, and you will need a deposit of 2o% of the purchase price of the home. We will require your drivers licence, and if you are refinancing, a copy of your last 6 months loan statements to show you are up to date with your loan repayments.

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