Hello Garfie. Welcome to the forums.
Yes, a low doc home loan
is a suitable option for self-employed borrowers whose income documents do not reflect their actual income.
To qualify for a full doc or a standard home loan as a self-employed borrower
, you’d need to provide at least 2 years tax returns and Notice of Assessment, 2 years personal tax returns, and 2 years business financial statements. The banks will assess your income based on those documents.
Whereas, to qualify for a low doc loan, you can use one or a combination of these documents to declare your income:
Below are some key characteristics of low doc loans:
- 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.
We specialise in helping self-employed borrowers get approved for a mortgage.
Speak with one of our specialist mortgage brokers by giving us a call on 1300 889 743
or by filling in our free assessment form
to find out if you qualify for a low doc home loan.