What is a Lodoc Loan?
Buying or refinancing a home is a challenging experience, particularly if you are self-employed and have published income figures that don’t tell the whole story.
In recent times 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 then a No/Lo 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 No/Lo 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 strongpoint.
Generally with a Lo Doc loan you are not required to provide any documentation to substantiate your income (Tax Returns etc). Instead, you "self-declare" your income by completing an Income Declaration Form. If you only want to borrow a maximum of 80% of the value of the Security property/s.
Lo Doc Loans allow applicants to purchase or refinance residential property (either owner occupied or investment) without declaring or providing ANY income details or their Assets and Liabilities. They are essentially an "Asset Lend" over the property being offered as Security. Normally these loans are at a maximum 80% LVR.
If you have an ABN number for registered 2 years or more and are looking to purchase or refinance a property for investment purposes. The paperwork is very simple and there is no minimum pre-requisite period of self-employment required, but an ABN is usually required.
