Low Doc Loans :: Flexible home loans without all the paperwork

Apply for a loan in Five easy steps.

	All of our services are obligation free and are also free of any brokerage fees or other hidden costs. Simply use our Online Enquiry Form and tell us your situation and we'll have one of our experienced and qualified loan consultants call you back. Your may also call us direct to discuss your options on 1300 736 976. Please note that our office is currently AVAILABLE TO TAKE PHONE ENQUIRIES Mon-Fri 8:30am to 5pm AEST to Callers.
	Once we have agreed on a suitable solution, we will then ask you to complete some preliminary paperwork to ensure that there are no obvious impediments to you applying for a loan. This is usually a single Form requiring 2 minutes of your time (which we will email or fax to you for completion) ... this Form is then faxed back to us for assessment. Our philosophy is that we don't want to waste your time by asking you to "formally" apply for a loan until we have determined that your chances of being successful are extremely high.
	Following our preliminary checks (which takes about 10 minutes), we will call you to advise the outcome and to arrange a suitable time to complete the paperwork "over the phone". This will usually take around 30 minutes of your time.
	Once the paperwork is completed, we will normally email (or express post) the package to you for signature. Included in the packet will be specific instructions on what you need to do to complete the Application.
	Once you return the Application Pack, we will then submit the information to the appropriate Lender (along with our covering notes and recommendations) and advise you of the outcome.

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Do you charge any fees for your services?

No. You will not be out of pocket by applying through us instead of lodging an Application directly with the Lender. Our service is usually FREE - we do NOT generally charge Application or Brokerage fees unless the Lender dictates otherwise. We are paid a commission by the Lender once your loan settles. The interest rate, fees and charges that the Lender applies are the same, regardless of whether you apply directly through the Lender or via our website. It is highly unlikely that you will get an interest rate reduction by applying with the Lender direct. The interest rates that we quote are the same as the Lenders published rates (available on their respective web sites). We DO NOT (and cannot) add an interest rate loading or increase the Lenders published fees.

Do you favour one Lender over another?

No. Commissions paid to us vary little between Lenders. Having said this, for convenience and "comfort" reasons, we will generally try and place your business with a major bank (PROVIDED that the interest rates are competitive, that this is acceptable to you and that the loan is suitable for your needs).

You deal with most of the major banks, why can't I just apply directly with them?

You can apply for a loan at your local branch, but your likelihood of success is limited. Typically you will be asked to complete an Application Form and the bank will then assess the loan based on the information disclosed therein. What you don't know is that there are many internal policies that will determine whether or not your application will be successful. These include (but are not restricted to):

The amount you want to borrow as a percentage of the offered Security property/s value.

The age of the Borrowers (some Lenders WILL shorten the loan term depending on your age).

Whether you can service the debt based on your self certified income.

Mortgage Insurance issues (policy and loan limits).

The location of the Security property/s.

The zoning and size (acreage) of the Security property/s.

Loan conduct on existing loans.

Current debts.

Credit rating.

Self employment and ABN status.
We do not assess loans this way. We ask you a series of very specific questions which will immediately tell us WHICH lending institution is more likely to assess your application in a favourable light (we are aware of each Lenders internal policies with respect to Low Doc lending). We do NOT start any paperwork unless we are 95% + certain that your application will succeed. In a nutshell, we simply save you time and frustration by selecting the right Lender FIRST TIME.

Can I apply for a loan from within any state within Australia??

Yes. Most Lenders have mechanisms in place where we can complete Applications remotely and then email/post the Application Pack to you for signature. We normally have an initial telephone conversation and then agree on a suitable product to suit your circumstances. Once a decision has been made, we then complete the Application Form over the phone and forward it to you together with a very specific set of instructions detailing what needs to be done to finalise your Loan Application. The process is very simple and relatively quick, as all of the paperwork has been filled out in advance.

I've heard the Tax Dept is taking an interest in Low Doc loans, will this impact me?

It is possible that the Tax Department may randomly scrutinise Income Declarations lodged with Low Doc Applications and compare the declared figures against actual Tax Returns lodged by borrowers.

Disclaimer ... you must not rely on the following anecdotal opinions when making a decision on how applying for a Low Doc Loan may impact your tax affairs. If you are at all concerned, then you should seek legal and/or financial advice from an independent, appropriately qualified practitioner.

1. If you do not lodge Tax Returns (or have not done so for several years), then there is every likelihood that you may be subjected to a tax audit if the Tax Department's matching process reveals that this is the case. By law, you must lodge Tax Returns every year (even if they show zero income). If you have not been doing this, then you are already in breach of your obligations and there is the possibility that you will eventually be identified in any case.

2. If you have been lodging Tax Returns, it is possible that the Tax Department's matching process may reveal a discrepancy between your self declared income on the Lenders' Income Declaration Form and the actual figures as per your Tax Returns. You may, of course, have perfectly valid explanations for this (business add-backs, legal tax minimisation strategies etc). However, it is possible that the Tax Department may require a detailed explanation and may even subject you to a formal tax audit. If you are audited, then the Tax Department may employ a "reasonableness" test when first assessing your level of tax compliance. This simply means that they may look at your assets and ask for an explanation of how you paid for them. They may also look at your monthly outgoings (mortgages, living allowances, loans etc) and ask you to explain how you have been servicing them. If your taxable income as declared on your Tax Return fully services the monthly outgoings and assets level (or you can explain how you are meeting them), then the Tax Dept may be satisfied that you are conducting your tax affairs in a satisfactory manner.

3. Due to the very definition of a Low Doc Loan, the Lender will accept the income that you declare on the appropriate income declaration form without question. The Lender does not ask to see income proof and does not ask to see Tax Returns. For this reason, the onus lies on the applicant to ensure that they understand the possible tax implications when declaring income figures to a Lender. The Broker or Lender cannot be held responsible for any discrepancies between declared and actual incomes that may arise as a result of a tax audit.

What is an LVR (Loan to Value Ratio)?

A Loan to Value Ratio (LVR) describes how much you can borrow as a percentage of the value of the offered security property(s). For example:
You are offering 2 houses as security worth a combined $500,000.
You wish to borrow $350,000 in total.
The LVR is then 70% ($350,000 divided by $500,000 times 100).

What is Lenders Mortgage Insurance (LMI)?

Lenders Mortgage Insurance (or LMI) does not protect the borrower in any shape or form. It is an insurance policy taken out by the Lender in case you are late with your payments or default on the loan. If this occurs, the mortgage insurance company will pay the lender the shortfall and will then recover this amount from you. Mortgage insurance is normally payable by borrowers on all loans with a Loan to Value ratio exceeding 80% on standard (documented loans). Some loans are slightly different depending on the lender. As you can see from our product range, mortgage insurance is only payable under certain circumstances. As at Oct 2009 there were only 2 mainstream mortgage insurance companies in Australia - Genworth Financial (GE) and QBE.

What is the UCCC (Uniform Consumer Credit Code)?

The Uniform Consumer Credit Code (UCCC) is legislation that regulates credit that is provided to personal customers and strata corporations by banks and other lenders that provide credit as part of their business.
When does the UCCC apply?
The Uniform Consumer Credit Code applies to the provision of credit if, at the time the credit contract is entered into:
1. The borrower is a natural person or a strata corporation (Body Corporate) and the credit is provided, or is intended to be provided wholly or predominantly for personal domestic or household purposes and a charge is made for providing the credit.
2. The lender provides credit in the course of a business providing credit or as part of or incidentally to any other business of the lender.
Who does the UCCC apply to?
The Uniform Consumer Credit Code applies to nearly everyone who lends money for personal purposes, including banks, building societies, credit unions and their agents, mortgage brokers, originators and managers, finance brokers, insurance companies, finance and leasing companies, retailers providing credit facilities and any other person or company providing credit.
For more information, visit www.creditcode.gov.au.

What is a Regulated Loan?

If you are buying a home to live in or if you are refinancing an owner occupied home where the majority of the released funds are for personal use, then the loan is regarded as "regulated" (covered) under the UCCC (Uniform Consumer Credit Code). Additionally, the borrower(s) must be an individual, individual trustee, unincorporated association, sole proprietor, strata corporation or a partnership to be covered by the Code.

What is an Unregulated Loan?

If you are buying an investment property or if you are refinancing a home where the majority of the released funds are for business or investment use, then the loan is regarded as "unregulated" (not covered) under the UCCC (Uniform Consumer Credit Code). If the borrowing entity is a a Corporation / Company, the it is not covered by the Code.

Does it matter if I am protected by the UCCC?

The UCCC provides a framework for dispute resolution and / or recourse in unjust dealings with a Lender. All of our loans are written under the UCCC regulations provided that they qualify. If a loan is "unregulated" (see definition above), then the loan (by definition) will not be covered by the UCCC. Generally you are required to sign a "Declaration of Loan Purpose" which will determine whether the loan is regulated or not. This Form should be accurately completed, otherwise you may lose your protection under the Code. Where appropriate, this document will be provided with the Application package.