Not everybody can prove their income...
How can a waitress prove to a bank that she earns income from tips? How can someone with a sales job prove to their lender that their commission income is stable? Many people with common jobs are finding it increasingly difficult to obtain a loan simply because they don't fit the standard boxes on bank's application forms!
What is the answer? The PAYG low doc loan. Now you can declare the income you receive from your normal job without having to answer lots of difficult questions! You don't need to provide payslips or commission invoices, a one page income declaration is enough to keep our lenders credit departments happy.
Casual income
Casual employees can often work as much as they want to work. Before they apply for a home loan they don't need to work that often, so their payslips show a low income. Of course when they have their loan they just accept more shifts so that they can keep up with the repayments.
This is a perfectly legitimate and common situation, yet the major banks don't recognise future earnings so you can't get a full doc loan. This type of situation is acceptable to one of our low doc lenders.
Commission income
Anyone in sales can tell you that if they need to earn more money they can just work longer hours or talk to more customers. So more often than not the income shown on a salesperson's weekly payslip doesn't show their true ability to repay a loan.
Did you know that to get a full doc loan most lenders use your last two years tax returns and average the commission received? If you haven't been in your job for two years they just can't help! This inflexible approach by lenders has resulted in the commission income low doc, enabling salespeople to get home loans without the paperwork.
Cash in hand income
Waiters, tutors, valets, bricklayers and many other professions are typically paid without their employer ever issuing payslips. This is no problem until of course they apply for a loan! With no payslips to show these borrowers are often left high and dry by their banks.
Because there is no need to provide payslips for a PAYG low doc the home loan can be approved quickly and without hassles.
Who should not apply for a PAYG low doc?
If you are lying about your income to obtain a loan then do not apply for a low doc loan. You will only hurt yourself. We strongly recommend that you complete a self assessment of your income and your ability to repay a loan before applying for a new home loan.
Will I pay a higher interest rate because I'm not self employed?
No, low docs for PAYG borrowers usually have the same low rates available to self employed borrowers. Instead of charging a higher interest rate lenders usually reduce the maximum amount you can borrow to 70% or even 60% of the value of the property. This is also referred to as 70% LVR or 60% LVR.
Where can I apply for a PAYG low doc?
Enquire online, ask us for a free quote or click on the apply for a loan section to talk to us about the discounted interest rates available from our panel of lenders.
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