What are the Low Doc Loan Requirements?
The standard mortgage remains the conventional home loan. It requires three months of payslips and bank statements. The home loan also requires a 20% down payment. Lenders recognised that Australians don’t fit into the conventional mortgage mold. Thus, in the late 2000s, they developed variations of the home loan including the low doc loan. It acknowledges that self-employed individuals cannot provide full financial documentation. Therefore, the loan accepts alternative forms of documentation.
- Low doc loan requirements include:
- Two years of tax returns
- Three months of bank statements
- Business statements
- Letters from accountants to verify income
Put together, these financial documents help loan specialists and the lending team verify the applicant’s income. Mortgage House is an innovator in the lending industry. Thus, we understand that the labor sector has seen several changes. More Australians have opted for freelance work. Several remain small business owners too.
Our loan specialists take income seasonality into account.
As our lending team explores your current financial situation, you can improve your position. Lenders finance between 60% to 80% loan-to-value ratio for low doc loans. Thus, those who provide a 20% deposit or collateral reduce their risk from a lender’s perspective.
Once you become a Mortgage House client, you receive access to our other loan products including our car loan.
Low Doc Loan Requirements Conclusion
The low doc loan requirements help self-employed individuals become homeowners even though they cannot provide full financial documentation. Mortgage House loan specialists walk applicants through the requirements. Once they obtain documents that help our team verify the applicant’s income, the process can move forward. Contact our team today.