Yes, for borrowers who’ve just started their business and can’t provide 2 years financials to prove their new self-employed income, a low doc home loan is a great option. For low doc cashout or equity releases lenders typically require proof of how the funds will be used if any money is released directly to the borrower. Lenders are concerned that the borrower may not actually have an income and is using the money to make the repayments or that equity is being released to be used as a deposit to buy further properties.
Each lender has its own requirement and accepts different document types to verify your income. These include:
- 12 month’s BAS (business activity statements) showing a high turnover.
- An accountant’s letter or declaration verifying your income.
- Business bank statements showing a high turnover.
- Older tax returns (over 24 months).
- Interim financial statements.
With a low doc loan, you can:
- Borrow up to 60% of the property value with standard home loan interest rates.
- Borrow up to 80% of the property value with competitive interest rates ( a risk fee may apply).
- Borrow up to 90% of the property value with one of our lenders (higher interest rates and risk fees apply).
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 mortgage.
Cheers,