How to get approved for a no doc loan?

Any general questions you might have in regards to loans and finance.
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Otto Dargan
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Re: How to get approved for a no doc loan?

Post by Otto Dargan »

Hello David. Welcome to the forums.

A no doc loan is helpful if you can’t provide any income evidence at all.

So if you can't provide tax returns, BAS statements, an accountant’s letter or bank account statements to verify your income, this may be an option for you.

However, if you can genuinely afford the loan then, in most cases, you may better off with a low doc loan because it's a lot cheaper and a lot easier to get approved.

Even though you don’t need to provide any evidence of your income for a no doc loan, please be aware that some lenders will still ask you to sign a statutory declaration of your assets and liabilities and a declaration that confirms you can afford the loan repayments.

A no doc loan must be NCCP unregulated. That means your loan must meet one of the criteria mentioned below:
  • Your loan must be for business purposes only, or
  • Your loan must be secured by a commercial property, or
  • Your loan must be for investment purposes (other than residential property), or
  • Your loan must be in the name of a company or trust with an ABN.
If your loan doesn’t fit into at least one of the above criteria then it will be declined by all no doc lenders.

Speak to one of our mortgage brokers directly so they can find the right solution for you. Give us a call on 1300 889 743 or enquire online.

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

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How to get approved for a no doc loan?

Post by Otto Dargan »

Hi David,

For a no doc loan, the security for the loan is all that the lender is relying upon. Therefore, lenders are very particular about the type of properties they accept as security.

As a general rule, the property must be:
  • In a good location.
  • In good condition.
  • Larger than 50m2 for a unit or under 2 hectares for a standard residential property.
  • Readily saleable.
  • Residential, office, factories, warehouses and retail units may be acceptable for a no doc commercial loan.
Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How to get approved for a no doc loan?

Post by Otto Dargan »

Hi David,

That depends.
  • You can borrow up to 65% of the property value with second tier lenders at rates that are 2-3% higher than the banks.
  • For 80% no doc loans, only expensive short term caveat loans are available from 24% p.a. and above.
  • Residential properties are acceptable as long as they are NCCP- unregulated.
  • Commercial properties are acceptable with one of our lenders, who will allow you to borrow up to 65% of the property value.

    The following may also be available to you depending on the risk of your application:
  • Loan term: Up to 3 years interest only.
  • Maximum loan size: $1,000,000, generally speaking.


Give us a call on 1300 889 743 to speak with one of our mortgage brokers directly or fill in our free assessment form and we'll call you back.

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

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