Buying or refinancing a home can be a daunting and frustrating experience, particularly if you are self-employed and have published income figures that don’t tell the whole story. But don't despair! ... recognising this, the market has seen the introduction of Low Doc loans at rates similar or equal to those of a normal home loan for borrowers who, based on their available income figures, aren’t able to substantiate their ability to repay a standard home loan.

If you have Tax Returns that aren’t up to date or trading figures that don’t genuinely reflect your precise income situation (due to addbacks, once-off expenses or legal tax minimisation strategies), then a Low Doc loan may be the answer for you. Additionally, applicants who have complex business structures may simply find it more convenient to apply for a Low Doc loan, thereby avoiding the paper warfare normally associated with a traditional loan. Whatever your reason, convenience is the key, particularly if paperwork is not your favourite thing.

Important Notes regarding Low Doc Loans and the National Consumer Credit Protection Act

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. Having said this, the Act does not specify what sort of additional enquiries need to made ... it simply says that it is not permissible for a Broker/Lender to make no enquiries.

Because of this, we are now required to ask for some evidence that Borrowers are in a position to service the requested loan on an ongoing basis. What we may ask for will depend on your particular situation. Some examples include: Very little (for sophisticated Investors/high nett worth individuals), 6 months of current mortgage statements, 6 months of current rental statements, 3-6 months of Bank Statements showing income flow, BAS statements for 6 months, Accountants Letters and so forth. Our objective is simply to satisfy ourselves that you will not be placed in a position of hardship should your Loan Application be successful. It is also important to note that we will work with you to satisfy this requirement. To this end, we will be open to any documentary proof that you can provide us that will satisfy the spirit of the legislation.

There are a number of different classes of Low Doc Loans ... all of which are designed to address a different set of circumstances.

They include:

Residential Low Doc loans for the Self Employed.
These loans typically have a maximum LVR

The LVR (Loan-to-Value-Ratio) 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 70% in this case ($350,000 divided by $500,000 times 100).

of 80% and are for applicants where the primary borrower has been self employed for at least 2 years. The maximum loan amount can be as high as $1,000,000 (or higher, at a 60% LVR

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Non Conforming loans.
If you have problems with your credit or you want to borrow up to 80% of the value of the offered security/s, then there are options in the marketplace open to you. Contact us for further information.

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We provide services to all states within Australia: New South Wales (NSW), Victoria (VIC), Australian Capital Territory (ACT), Queensland (QLD), South Australia (SA), Tasmania (TAS), Western Australia (WA), Norther Territory (NT). Major areas covered include: Adelaide, Albany, Alice Springs, Armidale, Balladonia, Brisbane, Carnarvon, Broome, Bundaberg, Byron Bay, Cairns, Canberra, Carnarvon, Central Cost, Coffs Harbour, Cooktown, Darwin, Derby, Geraldton, Georgetown, Gladstone, Gold Coast, Groken Hill, Hobart, Kalgoorlie, Karumba, Katherine, Larrimah, Launceston, Lismore, Mackay, Melbourne, Minilya, Moree, Newcastle, Noosa, Northam, Perth, Port Hedland, Portland, Port Lincoln, Port Macquarie, Rockhampton, Sunshine Coast, Southern Cross, Sydney, Townsville, Wollongong and Tweed Heads.

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The Low Doc Loan and No Doc Loan specialists
Low Doc Loans are all we do, call lowdocloans.com.au
WEBLOAN PTY LTD ABN 22 107 596 225 has been registered to engage in credit activities
under the National Consumer Credit Protection (Transitional and Consequential Provisions) Act 2009.
Credit registration number 349770.