Low doc mortgage to refinance & build a home

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cjracey
Posts: 52
Joined: Mon Jun 15, 2009 12:13 pm

Low doc mortgage to refinance & build a home

Post by cjracey »

I want to refinance my current mortgage as I can no longer afford to keep paying a high interest rate, so I'm looking for a competitive rate preferably with one of the major banks. I need a low doc mortgage so that I can self declare my income.

Some info about my situation:
- I've never missed a payment with my current mortgage, payments are always on time.
- I have an ABN which I've had for 2 years now.
- I don't have any Business Activity (BAS) statements but I'm able to get an accountants letter to confirm my income. I've read on your low doc loan page that this is ok if I'm only borrowing up to 80%?
- I want to refinance my current mortgage and then build a home on a block of land which I own outright (purchased this in early March this year). Land value is $250,000 and building price is $260,000.

Do you think that based on my situation I'd be able to build a home in the next 6 months? Is this type of home loan acceptable?

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Low doc mortgage to refinance & build a home

Post by Otto Dargan »

In the last six months it has become very difficult to help people with a low doc construction loan if they already own the land and have a loan on it. This is because almost all lenders either do not accept construction with a low doc, do not accept refinances with a low doc or require BAS statements. So the combination of low doc refinance construction doesn't fit.

However we still have one lender (that most brokers do not have access to!) that can lend 80% of the land value plus cost of construction and can accept an accountants letter & income declaration (from you) as verification of your income. Their interest rates are very competitive too, often better than the major bank's rates for low doc loans at 80% LVR (80% of the property value).

You meet the requirements of being self employed with an ABN for > 2 years. You are also likely to need GST registration for > 12 months, although exceptions can be made in some situations.

Please enquire online to discuss your situation in detail with one of our mortgage brokers.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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