Low Doc With No Income Evidence


Low Doc With No Income Evidence.

As of the 1st of January 2011 National Consumer Credit Protection (NCCP) regulation came into play and the bank tightened their lending policies for low doc dramatically by now requiring 12 months Business Activity Statements (BAS) for all new applications.

However some lenders have interpreted the legislation differently, as a result there are a select number of lenders who can still provide low doc mortages with no income evidence.

How much can I borrow with no income evidence?

If your income exceeds $75,000 per year, then some lenders will require that you produce 12 months BAS statements. However, if you have enough funds to keep the LVR below 60% then the lenders may not request this information from you.

Another option available to you is to have an Accountants Letter or Lo Doc Declaration completed by your Accountant. This way you will be able to borrow up to 80% of the property value (LVR).

If you are unwilling to state your income, a possible solution is a No Doc home loan. These loans allow the borrower to simply declare that the loan is affordable. The maximum LVR is frequently lower than a standard Low Doc home loan and the interest rate is much higher – this is because the lenders view this type of loan to be a higher risk to the bank.
Bear in mind that these loans are however only available for investment purposes.

What are the Requirements for Self Certified Low Doc Loan?

Instead of the usual requirement of 12 months of Business Activity Statement (BAS) to qualify for a low documentation mortgage; banks will normally only require the following for a Self Declared Income Low Doc loan:

  • Clear Credit History with no adverse listings and you must pay all current debts on time.
  • A large deposit – normally a minimum of 20% of the purchase price – or equity in an existing property.
  • ABN will need to be registered for a minimum of 2 years – if you are purchasing under 60% LVR then you may only be required to be registered for 12 months.
  • GST will need to be registered for a minimum of 12 months – some lenders will require a 2 year registration however.

Enquire online to find the lender right for your low doc loan! We’ll help you choose a competitive loan from our panel of specialist low doc lenders.