It is ESSENTIAL to check the rate on your low doc!
Why? Because in the last five years the interest rates and fees on low doc loans have reduced significantly due to competition! If your loan is over two years old you should check to see if it is still competitive.
If your lender is making a killing out of your loan they aren't going to call you up and tell you to change! It's up to you to talk to us and see what else is available. Best of all you can access your equity for other purposes as part of your refinance!
Macquarie & Adelaide Bank did what???
The recent sub prime lending crisis has had a large effect on some lenders, particularly on the cost of funding their low doc loans! Macquarie Bank and Adelaide Bank are both retail (direct to the public) and wholesale (rebranded through other companies known as originators) lenders that have lent out large numbers of low doc loans in recent years.
Due to the shift in the cost of funds both Adelaide Bank and Macquarie Bank have increased their low doc interest rates significantly more than most other lenders! If you are with Macquarie Bank or Adelaide Bank you absolutely must check to see if your loan is still competitive! By refinancing you may be able to cut the equivalent of several reserve bank rate increases off your home loan!
Macquarie's wholesale lending has been through Perpetual Limited, PUMA or Perpetual Trustees Australia Limited and has been rebranded as Aussie Home Loans, Virgin Money, Mortgage House, Yes Home Loans and a variety of other non bank lenders. All these lenders have been effected too!
Adelaide Bank which has recently merged with Bendigo Bank has wholesale low doc loans rebranded through Great Pacific, Domain Financial Services, AFG Mortgage Management, Mortgage Ezy, National Mortgage Company (NMC), Mortgage House, Homeloans Limited and a variety of other non bank lenders.
Contact us to discuss how we can help you refinance to a competitive deal!
Turn lemon into lemonade by switching banks
If your bank is no longer competitive then why stay with them? The cost of a mortgage over thirty years can be substantial, and a higher rate can make a huge difference to your bottom line. Some of our customers also elect for a shorter loan term with higher repayments, allowing them to repay their loan even sooner!
Firstly we assess your potential savings and determine how much you will benefit by changing banks. Then we will complete an application and send it to the new lender whilst at the same time arranging the discharge of your old loan with your old bank. After your loan is approved, a loan offer will be sent to you for you to read and sign. When this is returned the new bank meets with your old bank and pays them out. Switching banks has never been easier!
Can I consolidate debt when I refinance my low doc loan?
Yes it is possible to borrow additional money when refinancing with a low doc loan to pay out other debts or for other purposes that you choose. If you have a credit card at 18% and a personal loan at 13% then why not roll them into one easy repayment at low home loan rates?
When consolidating debts with your refinance, the lender will need to see your current loan statements to ensure your loans have been paid on time. If it hasn't then talk to us to find out about lenders that can help even though you have missed payments on your current loans.
What can I use my refinance funds for?
Most lenders do not restrict what you use your money for. You can invest in shares or property using an investment loan, or buy a new place to live using the equity in your investment. Renovations, knock down and rebuild as well as most personal or domestic purposes are fine with a low doc loan. Lenders will not accept refinance funds to be used for illegal purposes or for the repayment of tax debt.
Does a rapid refinance work with a low doc?
A rapid refinance is also known as a Quick Refi, Priority Refinance XRO, FastRefi or Express Refinance. This is where your refinancing lender advances your new low doc loan before your old lender has given them your property title deeds as security! They can do this because of title insurance, which they use to protect themselves in case something goes wrong and their loan is left unsecured.
Although the exact process may differ from lender to lender, most will allow you to take this option with a low doc loan, enabling you to get your money faster!
Are there any equity requirements?
When refinancing a low doc loan most lenders will not allow you to borrow more than 80% of the value of your property (80% LVR). If you are borrowing between 60% and 80% of the value of your property some lenders will ask you to pay an LMI premium. A select few lenders will consider refinances where you are borrowing more than 80% of the value of your property!
Besides these rules, most lenders also have a no negative equity policy. What this means is that if your total assets are less than your total liabilities your loan will be declined! Look out!
What are the Low Doc Loan Interest Rates for refinances?
You can find these in our Low Doc Interest Rates section. When refinancing also consider the cost of LMI, setup fees and exit fees for your current lender. We can help explain all the costs of switching banks to help you make a logical decision.
How do I apply to refinance with a Low Doc Loan?
We are specialists in Low Doc Refinances and can help you find the right lender. Just go to our Apply for a Low Doc Loan section and send us your details. We'll be in touch with a few competitive quotes for your new, cheaper low doc loan!
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