Refinance a low doc loan

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otea
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Joined: Wed Mar 31, 2010 10:35 am

Refinance a low doc loan

Postby otea » Tue Apr 27, 2010 11:06 am

Hi,

I heard it's increasingly difficult to refinance low doc home loans..
Is it still possible?
If so, what is the max LVR?

Thanks! ;)

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Otto Dargan
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Re: Refinance a low doc loan

Postby Otto Dargan » Tue Apr 27, 2010 3:17 pm

Yes it is more difficult than it used to be to refinance low doc home loans. The reason for this is that lenders have identified that low doc loans that are being refinanced tend to have a higher risk of going bad than low doc loans used to purchase a property. This is particularly true if the customer requests "cash out" or a large amount of equity to be released to them.

There are still some lenders that can assist, they have quite tricky guidelines however in most cases we can still help with a loan for up to 80% LVR (80% of the property value).

Thanks
Otto Dargan
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