90% low doc

Borrowing up to 90% LVR is possible with a low doc loan however the rate will be upwards of 7% and the cost of LMI is approximately 2% of the loan amount.

The qualifying criteria for a 90% high lend low doc are:

  • 90% LVR for purchases only (85% for refinances)
  • Security must be a standard house/apartment/townhouse located near a capital city
  • Maximum loan size $750,000
  • Clear credit history
  • BAS, bank statements or an accountant’s letter is required to support your income
  • The loan must have principal and interest repayments
  • Must be self-employed for greater than one year

Our recommendation is to only apply for a 90% loan if you can soon prove your income or can reduce your loan to 80% of the property value quickly. That way you do not need to pay a higher interest rate for a long time.

If you can provide your tax returns or alternative income verification then we may be able to find you a lender willing to consider approving a normal 90% home loan for you.

85% low doc

IMPORTANT: 85% low doc loans have an interest rate over 6%.

Yes it is possible to borrow more than 80% LVR! However don’t expect to get the same interest rates offered by the major banks. Interest rates are generally more than 6% p.a. for this type of loan.

This is not a long term loan, although the term is 30 years, you should aim to reduce the loan down to 80% and refinance it as soon as possible. This type of loan is ideal for anyone consolidating debts, purchasing a new home or investing in a high growth area.

What if you have full evidence of your income? Then instead of a low doc try applying for a normal 85% home loan.

No deposit?

There are no lenders able to offer no deposit low doc loans. Sorry, you’ll have to save a deposit or complete your tax returns to be able to buy a property. Read on to find out the other way you can still buy a property…

So how do I buy a property with no deposit?

Many people have had no deposit but have still been able to buy a property with a low doc loan. How did they do it?

Your parents can obtain a loan using their home and then lend it to you as your deposit. You can then make payments on both loans and in time increase your loan to pay them out completely. This is a simple arrangement that works effectively for many first home buyers.

Over 60% of first home buyers obtain some help from their parents, so don’t feel bad about asking your parents for help. Many banks will decline your low doc loan if you have borrowed your deposit or received a gift from your parents. Only a select few lenders do not require you to save a deposit.

Enquire online to find out which lenders don’t require genuine savings for their low doc loans. We recommend that you and your parents obtain independent legal and financial advice before they lend you money for you to use as your deposit.

LMI & risk fees

Lenders Mortgage Insurers (LMI) tend to be very restrictive with high lend low doc loans. As a result many lenders charge a risk fee instead of obtaining LMI. What does this mean for you?

Basically you still pay a once off fee when the loan is set up. The name has changed however the overall effect is the same. Risk fees vary between lenders so be sure to shop around to get a competitive deal! Typically risk fees are around 2% for a 90% low doc loan.

Three tips when applying for a high lend low doc loan

  • This is not a long term loan. Aim to reduce the loan down to 80% and refinance it as soon as possible.
  • Don’t forget to factor in a risk fee of approx 2% when calculating all the costs of the loan.
  • The lenders are taking a much greater risk with high lend low doc loans, as a result they are especially strict on the kind of security used. They are only willing to accept standard residential properties located in the capital cities.

Apply for an 85% or 90% low doc

Enquire online or call us on 1300 889 743 to find the lender right for your low doc loan! We’ll help you choose a competitive loan from our panel of specialist low doc lenders.

  • Mason

    I want to borrow a 90% low doc loan but I can’t provide any my recent tax returns. Can I use some old ones to prove my income?

  • Hey Mason,

    Some of our lenders can accept out of date tax returns but, as a general rule, your old tax returns must show a high income and must not be more than two years old. They must also show two years returns & financial statements. You can call 1300 889 743 and one of our high lend low doc specialist brokers will see if we can use your old tax returns.

  • lycett

    What about no doc loans? What’s the max I can borrow with them?

  • Hey lycett, we can help you borrow up to 65% on a no doc loan through larger second tier lenders at competitive interest rates. If you want to go higher, up to 80% LVR, then this is possible only through expensive short term caveat loans.

  • Atkinson

    Are there pre-approvals available on a low doc loan?

  • Hi Atkinson,

    Yes, low doc loans are eligible for pre-approvals, depending on the lender. Some lenders call a pre-approval a homeseeker, AIP or being conditionally eligible. Note that a low doc pre-approval will typically last 3 months.

  • CDaniels

    I could wait for a few months and go 85% full doc instead, which is definitely a better idea. Will that require genuine savings?

  • Hi CDaniels,
    Some lenders require evidence that you have saved 5% of the purchase price in either a savings account, shares or a term deposit. However, other lenders can consider a gift from your parents or a lump sum deposit as evidence of savings, which means that in most cases, you can borrow 85% with no genuine savings.

  • Peete

    Hey, can you give me a few examples of savings that can be considered to be genuine savings?

  • Hey Peete,
    If they add up to be more than 5% of the purchase price, the following types of savings are considered to be genuine savings:
    – Savings held or accumulated over 3 months.Term deposits held for 3 months.
    – Shares or managed funds held for 3 months.
    – Equity in real estate (varies depending on the lender).
    – If you’ve been renting for the last 3 months then some exceptions may apply.