In order to qualify for a no doc mortgage, you're generally required to meet the following requirements:
- Although you don't need to provide Business Activity Statements (BAS) or other income verification documents, some lenders will ask you to sign a statement of your assets and liabilities or a declaration that confirms that you can afford the loan.
- Your loan must be NCCP unregulated meaning that your loan must be for business purposes, secured by a commercial property, for investment purposes other than in residential property, or in the name of a company or trust with an ABN.
- The property you're buying must also generally be in a good location, in good condition and easily saleable (marketable).
- You should have a clear credit history. Else, you’ll almost certainly pay a higher interest rate while some lenders may not approve your application.
- No doc loans aren’t normally designed to be for a long period of time so lenders will want a feasible exit strategy. In most cases, they have a term of 6 months or 3 years and then their interest rate will increase.
Also, note that all of the major lenders have stopped doing no-doc loans. There are smaller and specialist lenders that typically charge a higher interest rate than a low doc loan with a mainstream lender.
Please call us on 1300 889 743 and one of our mortgage brokers will call you to discuss your options.
Cheers,