What is Low Doc Loan?
Low Doc loans (Low Documentation Loans) are generally for the self-employed who may find it difficult to apply for a traditional home loan, because many businesses may write off expenses, reinvest profits back into a business which makes it difficult to show a high level of business income.
A traditional home loan often requires lots of supporting documents, especially from an income point of view for the application while Low Doc loan products have lots of flexibility on the required documentation
Features of Low Doc Loan:
- Self-declared income
- Accountant’s letter to advise on turnover and profitability
- Good credit history for existing and previous loans
- Potentially higher interest rate than a traditional home loan, although some products in the market offer very similar interest rates.
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