Can I get a low doc loan through ANZ?

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Conan02
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Joined: Mon Apr 08, 2019 7:22 pm

Can I get a low doc loan through ANZ?

Postby Conan02 » Mon Apr 08, 2019 7:24 pm

Hey there,

I’m a self-employed beautician from Coppabella. I own a line of beauty parlours all over the country. I went on a holiday to Melbourne a few months back and stumbled upon a beautiful property in Warburton that’s priced at $950,000. Unfortunately, business has been a bit slow the past 2 years and is not at all reflective of what my businesses actually earns.

My friend went through a similar situation a few years back, and asked me to try applying for a low doc loan through RAMS. I took his advice but got knocked back almost immediately. They said that they no longer work low doc loans. Why doesn’t RAMS issue Low Doc Loans nowadays?

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Otto Dargan
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Re: Can I get a low doc loan through ANZ?

Postby Otto Dargan » Mon Apr 08, 2019 7:26 pm

Hi Conan,

Welcome to the forums.

RAMS had a low doc home loan service that was very popular with self-employed business owners like yourself.

Rams’ low doc loans were known for its low rates and easy approval criteria, often only requiring an accountant’s declaration of your income.

Unfortunately, the service was withdrawn in April, 2019 as Westpac, the owner of Rams, decided to no longer fund this product.

It is suspected that this decision was a byproduct of their fallout from the Royal Commission.

Luckily, there are other lenders who work low doc loans.

Please call us on 1300 889 743 or fill in our free assessment form to speak to a mortgage broker who specialises in low doc loans.


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

Conan02
Posts: 3
Joined: Mon Apr 08, 2019 7:22 pm

Re: Can I get a low doc loan through ANZ?

Postby Conan02 » Mon Apr 08, 2019 7:44 pm

Oh! That’s sad. But I suppose it is what it is. Anyway, I went through the link you sent me and found my bank, ANZ on the list. I didn’t know that they even had this service. Can you tell me how their low doc loans work, please?

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Otto Dargan
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Re: Can I get a low doc loan through ANZ?

Postby Otto Dargan » Mon Apr 08, 2019 7:59 pm

Hey Conan,

Yes, ANZ Bank’s Low Doc Loan allows borrowers to borrow u to 60% of the property value.

However, to qualify, you will have to have
An Australian Business Number (ABN) registered for at least 12 months.
Your registered business name
Your Business Activity Statement (BAS) for the last 12 months, together with ATO lodgement receipt

Please note that even though ANZ provides low doc loans, the lending policies itself are very strict.

This is because low doc loans have long been perceived by the public, government or media to be ‘liar loans’ that allow people who are not paying tax to get approved.

Fortunately, we have specialist lenders who are more flexible with their low doc loans.

With specialist lenders, you can borrow up to:
- 90% of the property value with one of our lenders (higher interest rates apply).
- 80% of the property value with competitive interest rates (risk fee might apply).
- 60% of the property value with standard home loan rates.


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

Conan02
Posts: 3
Joined: Mon Apr 08, 2019 7:22 pm

Re: Can I get a low doc loan through ANZ?

Postby Conan02 » Mon Apr 08, 2019 8:50 pm

Thanks, Otto. I really appreciate you taking the time to answer my questions. Since I’m hoping to borrow around 80% of the purchase price, I think the best route for me to take would be through a specialist lender. Don’t mind me asking, but are there any drawbacks of low doc loans? And what are the documents that I need to apply for a loan through a specialist lender?

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Otto Dargan
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Re: Can I get a low doc loan through ANZ?

Postby Otto Dargan » Mon Apr 08, 2019 8:51 pm

Hey Conan,

Excellent question!

Low doc loans pose a higher risk to financial institutions than standard full doc loans, so they tend to place greater restrictions on this type of loan.

Some potential issues with low doc loans are:

Higher interest rates: The interest rates you qualify for will depend on the sort of income verification documents you can provide. Some of our lenders offer the same low rates as full documents home loans.
Larger deposits: 20% of the purchase price is typically required although, a few of our lenders require less.
Lenders Mortgage Insurance (LMI): LMI is generally applicable for any home loans that are above 80% LVR, whereas, in the case of low docs, any loan over 60% LVR will incur LMI.

As for the documents, each lender has their own requirements and will accept different document types to assess your income like:

- 12 months’ BAS statements showing a high turnover.
- An accountant’s letter verifying your income.
- Business bank statements showing a high turnover.
- Old tax returns (over 24 months).
- Interim financial statements.

Please call us on 1300 889 743 or fill in our free assessment form to speak to a mortgage broker who specialises in low doc loans.

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


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