Are banks still doing low doc loans?

Any general questions you might have in regards to loans and finance.
Laura
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Joined: Wed Jan 16, 2019 11:55 am

Are banks still doing low doc loans?

Postby Laura » Wed Jan 16, 2019 12:01 pm

Hi, my husband and I started our own restaurant recently and have been extremely busy running it. We are planning to buy a house in Paddington and we were wondering if banks were still doing low doc loans. We completed our most recent business tax return but CBA knocked us back. We heard that they don't offer low doc loans anymore, along with the Bank of Queensland. Is that true?

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Otto Dargan
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Re: Are banks still doing low doc loans?

Postby Otto Dargan » Wed Jan 16, 2019 1:24 pm

Hello Laura. Welcome to the forums.

While it’s true that CBA and Bank of Queensland stopped offering low doc loans last year, there are other lenders who still offer low doc loans, albeit with a little more stringent requirements.
For most lenders, they require an ABN that’s been GST registered for two years. One of our lenders will accept an ABN that has been registered for a day.

If you can then provide one of the following alternative or alt docs to prove your business turnover, you'll have a good chance at qualifying for a low doc home loan:
  • 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.

Choosing the right low doc home loan can be difficult as different lenders have different requirements and interest rates.

One of our specialist brokers can help you choose the right lender and the right product from our panel of 40 lenders.

If you’ve been self-employed for one year or less, speak to us today on 1300 889 743 or fill in our free assessment form to find out how you can get approved for a low doc mortgage.

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

Laura
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Joined: Wed Jan 16, 2019 11:55 am

Re: Are banks still doing low doc loans?

Postby Laura » Wed Jan 16, 2019 1:51 pm

Great. Currently, we are looking to put down a 10-15% deposit. Is our deposit big enough?
How much can we borrow with a low doc loan?

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Otto Dargan
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Location: Sydney, Australia
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Re: Are banks still doing low doc loans?

Postby Otto Dargan » Wed Jan 16, 2019 3:24 pm

Hi Laura,

Most lenders allow you to borrow up to 80% of the property value with a low doc loan.

This means you need a 20% deposit plus another 5% to cover the costs of completing the purchase, including Lenders Mortgage Insurance (LMI), mortgage set up costs, and legal fees.

There are no deposit solutions available if you come up short with your deposit including using equity in an existing property.

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

Laura
Posts: 3
Joined: Wed Jan 16, 2019 11:55 am

Re: Are banks still doing low doc loans?

Postby Laura » Wed Jan 16, 2019 7:00 pm

Thank you for replying so promptly. I’ve filled up the online enquire form. Please give me a call soon.


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