No Doc Loans

Any general questions you might have in regards to loans and finance.
Maximus22
Posts: 4
Joined: Fri Jan 25, 2019 5:18 pm

No Doc Loans

Postby Maximus22 » Fri Jan 25, 2019 5:27 pm

Hello,

My partner and I recently tied the knot and are looking to purchase a decent sized property this year. We are currently eyeing an $850,000 property near Canberra but we don't know how much longer it will stay on the market.

Both of us are self-employed and run our own home repair business. Unfortunately, our financials aren't up-to-date. We haven't completed our latest tax return but we actually turned a higher profit this year compared to last year. I wanted to know if there was any way no doc loans available because we are unable to prove our business income by traditional means.

Any assistance would be appreciated.

Thanks

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Otto Dargan
Mortgage Specialist
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Re: No Doc Loans

Postby Otto Dargan » Fri Jan 25, 2019 5:37 pm

Hi Max,


Welcome to the forums.

If you can provide some business income evidence available to you, I would suggest you try:low doc loan first.

You'll get a much cheaper interest rate than a no doc loan!

Generally speaking, you will need to sign an income declaration and provide alternative income evidence or alt docs in the form of either:
Business Account Statements (BAS).

Accountant’s declaration stipulating your business income.

Your bank will acknowledge these alt docs as proof of your income and you won’t have to show your tax returns and any other financial documents.

Send us an online enquiry or call us on 1300 889 743 so that our team can assess your situation and let you know if you qualify for a low doc loan.


Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Maximus22
Posts: 4
Joined: Fri Jan 25, 2019 5:18 pm

Re: No Doc Loans

Postby Maximus22 » Fri Jan 25, 2019 5:58 pm

Hey,

Thanks for the information. I’m afraid that almost all of the documents that we have in our possession are very outdated and, upon consulting with my partner, I think that we don’t want to go through the hassle of having to use them to get a loan. Now since that option is invalid, can we still use the no doc loan to get a good home loan?

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Otto Dargan
Mortgage Specialist
Posts: 7162
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: No Doc Loans

Postby Otto Dargan » Fri Jan 25, 2019 6:06 pm

Hey Max,

Following the global financial crisis of 2007 - 2008, no doc loans are actually no longer offered by any lenders in Australia.

Low doc loans are the only type of home loan that is available to people with limited financial documentation.

If you have a valid Australian Business Number that has been running for at least two years and is registered for GST, you are technically eligible for a loan.


Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Maximus22
Posts: 4
Joined: Fri Jan 25, 2019 5:18 pm

Re: No Doc Loans

Postby Maximus22 » Fri Jan 25, 2019 6:08 pm

Thank you for the information. We didn’t know that no doc loans were no longer available. It gives us a lot to think about. Anyway, how much can we borrow with a low doc loan?. And if you could also please explain what an income declaration is, that’d be awesome.

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Otto Dargan
Mortgage Specialist
Posts: 7162
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: No Doc Loans

Postby Otto Dargan » Fri Jan 25, 2019 6:32 pm

Hey Max,


You’re in luck!

Given that you have all the necessary documents in order, some of our lenders can consider lending over 80% of the property value.

Please call us on 1300 889 743 or fill in our free assessment form to find out if you qualify for a low doc loan.

An income declaration form is basically a way for banks to verify your income.

It is used to check whether you are capable of making the repayments.

The form will ask you to state your business name, your Australian Business Number ( ABN), the amount you’re looking to borrow and the indicative repayments.

As the name implies, it acts as a declaration that confirms that your income is true and that you can make the loan repayments.


Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Maximus22
Posts: 4
Joined: Fri Jan 25, 2019 5:18 pm

Re: No Doc Loans

Postby Maximus22 » Fri Jan 25, 2019 6:33 pm

Wow! Thank you for all the information. We will consult with each other and reach out to Home loan Experts hopefully by the end of the month.


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