Low Doc Loans in the Recession
Can I Still Get a Low Doc Home Loans
Even though Australians were not severely affected by the global financial crisis, many Australian lenders have tightened their lending criteria on both full doc and on low doc loans so while low doc loans are not non-existent, they are quite a bit harder to get than they once were. Previously if you were self-employed and could not show a regular income, you could still successfully apply for a home loan and in most cases you simply needed to provide proof of your registered business, provide a signed document to self certify your income, and provide a 20% deposit.
However low doc loans have become much more similar to conforming loans since the global financial crisis and if your loan to value ratio is now more than 60% you will generally need to provide BAS documentation for four previous statement periods. Lenders will also assess your income on the basis that 40% of your turnover is assessable income however if you can provide tax return documentation of proof of your business expenses and you can show for example that your costs are only 10% of your turnover then more of your income may be taken into consideration by the lender to assess your eligibility.
Every Australian lender is different and those who do offer low doc options on their home loans will each have their own eligibility criteria so before you give up on your dream of owning your own home make sure to talk to Home Loan Finder about your options because it may be possible to gather together the paperwork you need for approval with our help. At Home Loan Finder we will also be able to secure you a low interest rate on your low doc loan despite the fact that many lenders will charge a higher interest rate on low doc loans because low doc borrowers are considered a greater risk. However at home loan finder we can guarantee that we can get you an interest rate on your low doc loan which will be lower than in the mortgage broker would be able to find.
Before you start considering refinancing your low doc loan to get a better deal, keep in mind that you will need to essentially reapply for your loan and just because you qualified for a low doc loans several years ago doesn’t mean that you will easily be able to refinance now. You may be subject to the new eligibility and documentation requirements so if you are self-employed and looking at a new or refinance to low doc loan make sure all of your financials are up to date to make sure your home searches are not in vain. It can also save you a lot of time and heartache to get full loan approval on your low doc loan before you start searching for the perfect home.
If you are an investor looking at applying for a low doc loan also keep in mind that the rent you receive from your investment properties is not included on your BAS turnover so you will need to make sure the income you are assessed by his high enough.
Just because lending times have changed it doesn’t mean you need to give up on your dream of buying a home because with the help of Home Loan Finder you will have all of the information, assistance, grants and paperwork you need at your disposal plus you will have a mortgage expert on your side who will go into negotiations with your lender to secure your eligibility not to mention the best deal on the home loan you choose so contact us now to find out more about recent changes in the home loan market.
Related posts:
- Low Doc Loans – Features & Eligibility
- What Are Low-doc Loans
- No Income Verification Home Loans
- Home Loans for the Self Employed
- Home Loans for the Self Employed – Full Doc & Low Doc Home Loan Requirements
- No Doc Home Loans
- Home Loans For Self Employed Borrowers
- Low doc High Cost: Be Careful of Low-doc Home Loans
- A Guide on What to Ask Your Low-Doc Lender
- Is Home Ownership Possible with a Low Doc Home Loan?
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