YES! - You can still get a Low Doc Loan if you have Credit issues.
Having said this, there has been some changes to Government Regulation that has placed added responsibilities on
Brokers/Lenders with respect to Low Doc Lending. A summary of the new Regulations follow:
On the 1st July 2010, a new Federal Credit Regulatory regime was implemented entitled "The National Consumer Credit Protection Act
(NCCP)". The Act covers only loans made to natural persons (not Companies) where the advanced funds are predominantly used for private
or domestic purposes or for residential property investment.
From a Low Doc perspective, Brokers and Lenders are now required to make "fair and reasonable" enquiries regarding the
Borrowers objectives and ongoing capacity to repay a Loan. As a result, Income Declarations where an Applicant signed a Form self
declaring earnings of $x pa will no longer be considered as sufficient proof of the capacity to repay.
Lenders have different interpretations on what is considered reasonable evidence of an Applicant's capacity to repay. Some require
BAS Returns for the previous 12 months while others will be satisfied with an Accountants Letter attesting to the Applicant's
ability to repay the Loan.
So, just give us a call on 1300 736 976 to discuss your situation or complete the Enquiry Form
on the top of this page. Alternatively, you can browse our Site to see what products are currently on offer to suit your circumstances.
The Team at lowdocloans.com.au
January 1, 2011.
