What is a Low Doc Home Loan?
A Mortgage created for the self-employed.
If you're self-employed, you may have found it difficult to get a traditional Mortgage. Don't despair. The Low Doc Home Loan has been designed specifically for the self-employed.
The dilemma of the self-employed
If you're self-employed, the goal of your accountant is to minimise your taxable income. Unfortunately, while this means you pay less tax, it creates problems when you try to borrow. While you might know that you can service a loan, your books don't back you up, or your paperwork may not be up-to-date. As a consequence, the self-employed often find it frustrating to obtain a Home Loan.
Consider the Low Doc Home Loan (or Lo Doc Home Loan)
While the self-employed often can't satisfy traditional lending criteria, they can be perfectly capable of servicing a loan. As a consequence, the Low Doc or Lo Doc Loan was born. Low Doc Loans don't require the same level of "documentation" as normal loans. If you have difficulty documenting your financial position with regular pay slips, tax returns or business financials etc, a Low Doc Mortgage could be a good solution.
Only borrow through an MFAA member
Low Doc loans are available through Brokers, Banks and Non-Bank Lenders. Even with a Lo Doc Loan, only borrow through someone you can trust. And that means a member of MFAA - they are the Essentials of Borrowing. Talk to an MFAA member today.
Want another Mortgage & Home Loan tip?
Home Loan Saving & Mortgage Saving. Check out Essential #11