What docs do I need to provide for a low doc refinance?

Any general questions you might have in regards to loans and finance.
Paul L
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Joined: Thu May 09, 2019 2:38 pm

What docs do I need to provide for a low doc refinance?

Postby Paul L » Thu May 09, 2019 2:39 pm

Hi, I’m a licensed electrician working in this line of work for more than a decade, however, I’ve been self-employed only for a year. I earned $90,000 last year. I’ve picked up another contract with a local real estate agent for maintenance of properties on their rent roll. I’m anticipating a significant uplift in business and need some capital to support this growth. I’m hoping to refinance my property for a cash out. My property is valued at $690,000 with a $250,000 mortgage balance. What docs do I need to provide to qualify for a low doc refinance?

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Otto Dargan
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Re: What docs do I need to provide for a low doc refinance?

Postby Otto Dargan » Thu May 09, 2019 3:10 pm

Hello Paul. Welcome to the forums.

A low doc loan is designed to help self-employed borrowers who can’t provide the traditional income evidence of 2 years full tax returns such as yourself. With loc docs you can provide alternative income verification documents such as a combination of:
It’s important to note here that the major lenders no longer approve low doc loans that are used to refinance an existing home loan. Thankfully, some lenders still refinance a low doc loan.

Speak with one of our experienced mortgage brokers by giving us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a low doc refinance with one of our lenders from our panel of 40 lenders.

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

Paul L
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Joined: Thu May 09, 2019 2:38 pm

Re: What docs do I need to provide for a low doc refinance?

Postby Paul L » Thu May 09, 2019 3:56 pm

That’s exactly what I’m looking for, I have the previous 3 quarters BAS ready and will soon have last quarters’ as well in about three weeks time. I’m hoping to cash out somewhere around $250,000 - $300,000. I know I’m accessing a large amount of equity, is that going to be an issue seeing as I don’t have all the docs?

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Otto Dargan
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Re: What docs do I need to provide for a low doc refinance?

Postby Otto Dargan » Thu May 09, 2019 5:17 pm

Hi Paul,

Although lending guidelines vary between lenders generally we can help you refinance your existing low doc loan if:

  • You’re borrowing up to 80% of the value of the property (Max cashout available to you while staying under 80% LVR is $302,000).
  • Your credit history is clear (some exceptions are made).
  • You have made your payments on time every time for the last 6 months (some exceptions are made).
  • You must have an ABN (Australian Business Number).
  • You need to provide evidence of the purpose of your loan.
  • Borrowing money for business, investment or personal purposes is accepted.
  • Your security should be prime and easily marketable to offset lax verification of income.

Lenders Mortgage Insurance (LMI) is generally applicable for low doc loans above 60% Loan to Value Ratio (LVR). With a $300,000 cash out your LVR will be almost 80% as such you’ll be paying the LMI.

You can use our LMI calculator to get an LMI quote.

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

Paul L
Posts: 4
Joined: Thu May 09, 2019 2:38 pm

Re: What docs do I need to provide for a low doc refinance?

Postby Paul L » Thu May 09, 2019 5:53 pm

What are the interest rates like for low doc loans? I mean I know I’ll be paying a higher interest rate than a standard loan but by how much?

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Otto Dargan
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Re: What docs do I need to provide for a low doc refinance?

Postby Otto Dargan » Thu May 09, 2019 6:49 pm

Hi Paul,

Low doc interest rates are often comparable to full docs depending on the documents that you can provide as those docs offset the increased risk to the lender. The interest rates are also tiered with what’s known as LVR risk matrix. It simply means the higher LVR you’re looking to borrow the higher interest you’ll be paying and the same is true for the inverse.

You can always refinance with a major lender down the line when you have your all your income and tax documents in order.

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 loan with the most competitive interest rate from our panel of 40 lenders.

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


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