Beat Home Loans Low Doc Loan

If you’ve never been one to follow the rules and colour inside the lines then you have probably always pursued your own path and even though people have told you you’re doing things the hard way – you’re doing them your way and you’re happier for it.

It probably never bothered you that in being self-employed you were doing things the hard way, because the benefits always outweighed the downfalls, until it came time to apply for a home loan. To a home loan lender it doesn’t matter that there is the same chance the mortgage advisor will be laid off tomorrow as there is that you will lose your biggest contract – the lenders just want to see pay slips and tax returns which prove an income.

The term income is also a key hindrance to the self-employed borrower because even if their business shows a high income, lenders do not assume that all of that income is your individual income, because some of it has to go to marketing, leases, wages and business expenses. So as a self-employed borrower you have to prove a much higher income than a conforming borrower in the same situation.

That is why many lenders now offer low doc loans which:

• Allow you to self certify your income and borrow up to of the property value.
• Show two BASS if you require a higher than 80% LVR.
• Offer you a fully featured loan to tailor to your sometimes unpredictable income and make it easier to save money on your loan.

The Low Doc Home Loan from Beat Home Loans

Beat Home Loans warns you right away that you will pay a higher interest rate on a low doc loan, than on a standard variable loan, but this is because you are a higher risk, as has already been pointed out. You will also be required to have a lower loan to value ratio, that is you can borrow only of the property value, where conforming borrowers can borrow up to 95%.

Other features of the Beat Home Loans low doc loan include:

• You can avoid LMI with an LVR of 60% or less. Lenders mortgage insurance is paid when your lender sees you as a risk, to cover their losses if you default on your loan. Typically LMI is paid when you borrow more than 80% of the property value, but as a low doc borrower you can only borrow 60% or less of the value if you want to avoid LMI.
• Interest only repayments for up to 5 years. If you cannot verify your income because you are an investor, then you may want an interest only repayment option on your next loan, to maximise your cash flow, and your tax return.
• Additional repayments. Anything you pay to your loan above the minimum monthly amount comes off of your principal loan amount and reduces the term of your loan.
• Redraw facilities. Redraw gives you access to the funds you have paid above your minimum repayment amounts and you can access redraw facilities through online banking with Beat for up to 5 free redraws a month, with a fee of $20 for each additional redraw. Or you can use your linked Visa debit card to redraw for free – just paying the Visa debit fees – as often as you like up to the value of $1,500 a day.
• Split loan. If you want to secure a portion of your repayments with a fixed loan or reduce your repayments with a basic low interest rate loan you can split your low doc loan with Beat for free.
• No hidden or obvious fees. When you apply for a low doc loan with Beat you will not be charged any settlement, valuation or legal fees but an application fee of ,. In maintaining your loan there are no ongoing fees, and no fees for a variation to your loan such as splitting your loan or increasing your loan amount.

Read the Beat Home Loans Low Doc Loan terms and conditions.

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