Low Doc Mortgages Australia – What You Need to Know
Low Doc Mortgages Australia
When you’re looking for a low doc mortgage, you may have several concerns. Whether you’re a sole trader or a self-employed individual, you’ll want to ensure that your financial records are up to date and accurate. If you have a credit history that reflects your current financial position, low doc mortgages may be an ideal option. Nonetheless, if you’re still worried that you don’t have enough documentation for a loan, you should consult a mortgage broker.
Many people don’t have the necessary documentation to prove their income, making low doc mortgages Australia a great option for self-employed individuals and investors. They also benefit from this type of loan because they don’t need to show evidence of their current income, which means they can save a considerable amount of money in the process. Low Doc Mortgages are also often suitable for people with a variable income or an unclean credit file. In addition, a substantial deposit will avoid Lenders Mortgage Insurance, which can be a costly burden.
Typically, applicants must provide proof of their income and assets, such as an accountant’s letter and business bank statements. While this isn’t the case with all low doc loans, many lenders still require some form of income verification. In addition to income verification, you’ll need to provide proof of your business’s GST registration and an ABN. A good asset to income ratio is at least 2:1. For self-employed applicants, a low doc loan can be a great option.
Low Doc Mortgages Australia – What You Need to Know
As a self-employed applicant, you’ll probably need to have a business bank account. While obtaining a low doc loan is relatively straightforward, lenders will often require some business documents before approving it. These can be anything from a business activity statement to bank statements. If you’re worried about the hassles of getting the documents you need to be approved, work with a mortgage broker. They can steer you to low doc home loans that fit your needs.
A self-employed applicant needs a low doc loan to purchase investment property. Self-employed people typically have a good idea of their income levels over the year, and they can budget for the payments on a home loan. However, if you’re a business owner and don’t have access to financial records, you may want to opt for a full doc loan. If you have a good credit history, reasonable asset-to-income ratio, and property that is easy to sell, you’ll be in a better position to get a low doc home loan.
Low doc home loans are a great option for the self-employed and small business owners. In addition to being easier to obtain, low doc home loans may also be a better choice for self-employed Australians. However, they come with different income verification requirements than full doc home loans. So, it is best to discuss the terms and conditions with an impartial mortgage broker to ensure you receive the best rates and terms.