Is it possible to get a better rate with a low doc loan?

Any general questions you might have in regards to loans and finance.
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Otto Dargan
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Re: Is it possible to get a better rate with a low doc loan?

Post by Otto Dargan »

Hello Angela. Welcome to the forums.

Self-employed borrowers such as yourself will know from experience that banks see you as a higher risk and tend to be more conservative when assessing your loan application.

Due to the nature of low doc loans, lenders often charge a slightly higher interest rate.

You can go to our interest rates page on our website and view the low doc section.

The interest rate of a low doc also depends on what Loan to Value Ratio (LVR) you’re borrowing at.

You can:
  • Borrow up to 90% of the property value with one of our lenders (higher interest rates apply).
  • Borrow up to 80% of the property value with competitive interest rates (a risk fee might apply)
  • Borrow up to 60% of the property value with standard home loan rates.
  • The bigger the deposit or your equity the better the interest rate will be.
Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a low doc loan with a highly competitive interest rate.

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

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Is it possible to get a better rate with a low doc loan?

Post by Otto Dargan »

Hi Angela,

Some lenders effectively self-insure their loans by charging a risk fee instead of obtaining Lenders Mortgage Insurance (LMI).
This just means there is no external mortgage insurer, you'll still be paying a fee similar to LMI.

Not all low doc loans have the same LMI premium rates, the same can be said of risk fees. They tend to vary between lenders and go by a variety of names.

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

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Is it possible to get a better rate with a low doc loan?

Post by Otto Dargan »

Hi Angela,

As an alternative to Business Activity Statements (BAS), there are some lenders who accept an accountant’s letter instead.

This letter acts as a guarantee of the accountant’s knowledge of your circumstances at the specified date. It is only valid for 60 days from the date mentioned.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a low doc loan using an accountant’s letter.

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

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