RAMS knocked me back saying they don't accept low docs anymore

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Percy
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Joined: Fri May 24, 2019 3:15 pm

RAMS knocked me back saying they don't accept low docs anymore

Postby Percy » Fri May 24, 2019 3:16 pm

Hi, I was advised by a friend of mine who used to work as a real estate agent that RAMS accepted low doc loans for business owners. But when I went there I was told by one of their loan officers that they don’t accept low docs anymore. Is that true? Are all the major banks pulling out of low docs?

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Otto Dargan
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Re: RAMS knocked me back saying they don't accept low docs anymore

Postby Otto Dargan » Fri May 24, 2019 3:37 pm

Hello Percy. Welcome to the forums.

That’s right, RAMS recently pulled out of low doc loans. There are, however, a limited number of lenders that still offer low document home loans. Their lending policies have become significantly tighter for low docs.

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.

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 home loan.

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

Percy
Posts: 3
Joined: Fri May 24, 2019 3:15 pm

Re: RAMS knocked me back saying they don't accept low docs anymore

Postby Percy » Fri May 24, 2019 4:13 pm

I was hoping to use my accountant’s letter to verify my income as my tax returns aren’t quite up to date nor does it show my real income. Is an accountant’s letter enough or do I need to provide additional documents?

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Otto Dargan
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Re: RAMS knocked me back saying they don't accept low docs anymore

Postby Otto Dargan » Fri May 24, 2019 5:54 pm

Hi Percy,

Some lenders will accept an accountant’s letter/declaration as an alternative to Business Activity Statements (BAS) to verify your income for low document loans. The accountant’s declaration letter is only valid for 60 days from the date mentioned.

The sort of income verification or supporting documents you’re able to provide will determine your interest rate. Some of our lenders have the same rates as they do for full documentation home loans for self-employed borrowers.

Each lender have their own requirements and will accept different document types to prove your income such as:
  • 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.

There are also alternate income verification methods that fall in the sweet spot between a full doc and low doc.

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

Percy
Posts: 3
Joined: Fri May 24, 2019 3:15 pm

Re: RAMS knocked me back saying they don't accept low docs anymore

Postby Percy » Fri May 24, 2019 6:22 pm

According to your website, even with a 20% deposit, I’ll be in the hole for LMI, why? Can you also provide me with a list or review of low doc lenders?

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Otto Dargan
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Re: RAMS knocked me back saying they don't accept low docs anymore

Postby Otto Dargan » Mon May 27, 2019 4:51 pm

Hi Percy,

Banks are very risk-averse, to compensate for the reduced income verification of low doc loans they require a higher deposit of 40% in order to have the LMI or risk fee waived. For low docs, LMI is generally applicable if you borrow over 60%, whereas, for full doc loans, you can generally borrow up to 80% without incurring LMI.

Have a look at our review of low doc lenders such as ANZ low doc loans and RAMS home loan review.

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 home loan with the most competitive interest rates on the market today.

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


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