AUSTRALIAN CAPITAL LENDING AND LOW DOC LOANS
Low doc loans, short for low documentation loans, presents a viable alternative to the more traditional loan for those that are self-employed, are full-time investors, or do not have their tax returns up to date. While, as the name suggests, the documentation that is required is not as voluminous as other loans, you will still have to provide proof of income by presenting either a bank statement that details your business income, a letter of validation from your accountant, or a business activity statement detailing your income and expenses. For a small business owner that had difficulty supplying two years’ worth of trading and two years’ worth of results.
Because of the nature of low doc loans, some banks and financial institutions deem these loans ‘irresponsible’ and do not offer them under any circumstances. Those that do offer low doc loans generally do so with restrictions, which can often be that the lender will only offer 80 percent of the property’s value, and is some cases some lenders will only offer 60 percent.
In turn, this means your deposit will generally need to be considerably larger than those with full doc loan.It is also advised that those seeking a low doc loan either bring a considerable amount of financial reserve or strong portfolio of assets to the table, as the lenders are likely to leverage your equity to lessen their risk. The property you are purchasing will also come under a more scrutiny, as the bank favours metropolitan areas and housing that is appraised as ‘stable’ in value. Since the financial crisis of 2007 and 2008, low doc loans have become increasingly harder to secure, however with the help of Australian Capital Lending, we can survey the market of lenders and best ascertain your chances of attaining a low doc loan.
SITUATIONS WHERE A LOW DOC LOAN IS SUITABLE
- New business owners with limited documentation
- Self-employed professionals with fewer than two years’ documentation
- Elder professionals or retirees who rely on investment income
- Professionals uncomfortable with disclosing their full income
- Disorganised individuals who need a home loan in a hurry
OUR SERVICES
At Australian Capital Lending, we understand the nature of employment is ever-changing, and that people are moving away from traditional nine-to-five working conditions to more flexible set-ups. Because our team of financial professionals comes from a wide array of business backgrounds, we are uniquely qualified to assess your financial situation. Contact Australian Capital Lending to begin the process of attaining a low doc loan today!
