Lender policies mentioned below may have changed with policy updates by a few lenders. For updated lender policies, please contact our mortgage brokers.
Not all low doc mortgage lenders are created equal!
When you’re looking to apply for a low doc loan, there’s more than just the interest rate to think about.
You need to consider the LMI or risk fee premium, the application fee (if there is one), the amount that you can borrow and the income verification requirements.
Some lenders are better than others when it comes to alternative documents to prove your income.
Find the right lender
How will low doc lenders approve my loan?
Most lenders require that you have a minimum of a 20% deposit and that you have an ABN to prove that you have been self employed for the last two years.
But this isn’t the case with all lenders.
Rather than risking a decline, speak to an experienced broker who will help you apply with the right lender.
Don’t just look at the interest rate
Even though the interest rate is low, there may be other hidden costs. To find out which loan is the cheapest, take a holistic approach and look at the cost of the loan including fees and other charges.
In particular, for low doc loans, there’s often LMI or a risk fee charged if you borrow more than 60% of the property value. These fees can vary significantly between different lenders.
Low doc loans should be treated as temporary loans
It’s recommended that you refinance to a full doc loan once you have completed your tax returns. So when choosing your low doc lender, it is much more important to take into consideration the application fee and LMI or risk fee, rather than just the interest rate.
Consider how many years you are likely to keep the loan for and then work out the total cost over that term. This gives you a true comparison between different options.
Can your broker access these lenders?
Unlike most mortgage brokers, our head broker group allows us to form relationships with any lender.
We work with lenders that some of our competitors haven’t even heard of! So you can be sure that we can get your home loan approved at a competitive interest rate.
You can view our full panel of lenders for more information.
Speak to a mortgage broker today!
To find out which lender has the right low doc loan for your circumstances, contact one of our expert mortgage brokers.
Enquire online or call us on 1300 889 743 and find out how to get your home loan approved.
Find out your low doc lender options
ANZ
One of the big 4 banks, ANZ has a strong suite of home loans offered through branch networks, mobile lenders and mortgage brokers.
Currently ANZ offers what they call their “Lo Doc 60 product.” The product is well known for having a simplified low doc process, competitive pricing and its inclusion of ANZ’s Breakfree Package.
They won’t lend over 60% of the property value with a low doc loan. They also use a benchmarking system to assess your BAS, where the industry you work in will effect the percentage of your turnover that they accept as your income.
Bluestone Mortgages
Bluestone was originally a non-conforming lender owned by several large institutional investors and Barclays Bank. Later they diverged into commercial loans and prime low doc loans, as well as Lite Blue and Business Easy low docs for customers with bad credit histories.
In early 2008, Bluestone reduced its residential lending business due to funding constraints. Currently, the business focuses on servicing their existing loan book and also the loan books of other mortgage lenders. They are not accepting new clients at present.
Genworth
Genworth works behind the scenes as a leading LMI provider in Australia. It removes the lending risks from lenders and helps you get into the housing market.
Genworth has a good commercial relationship with all major Australian banks and non-bank lenders. However, it has a reputation of being incredibly strict amongst mortgage brokers.
We recommend you speak with one of our mortgage brokers to improve your chances of home loan approval
LaTrobe Home Loans
Although the general public hasn’t heard much about La Trobe they are well known amongst professional investors, developers and mortgage brokers.
This is because their Lite Doc loan can be used for both prime and credit impaired borrowers, and can be used for small low doc development loans. If your loan is NCCP unregulated, there may be high exit fees.
Liberty Financial
Established in 1997, Liberty is known as the founder of Australia’s non-conforming and specialist lending industry. Their low doc loans, known as Nova or Private, are designed to cater good-quality customers that don’t fit the banks’ normal lending guidelines.
Their interest rates are generally higher than the banks, however, they are far more flexible with their lending policy.
MKM Capital
MKM Capital is a privately funded non-bank lender specialising in lending to customers who cannot obtain a loan through their bank.
MKM’s key credit criteria when assessing an application focuses on the security being offered, the borrower’s credit profile and how MKM’s products are likely to result in the borrower being in an improved financial position after the loan is advanced.
With the ability to consider low doc applications from people with defaults and court judgements on their CRAA (Credit file) and arrears on the property, MKM can help when the banks can’t.
Mortgage Ezy
As a mortgage manager, Mortgage Ezy focuses on providing wholesale funding options to home buyers and investors.
The lender has over 6000 accredited mortgage brokers available nationwide.
Mortgage Ezy specialises in delivering apt home loan solutions to customers who don’t fit in the standard lending criteria.
That’s why it is one of the go-to low doc lenders for our mortgage brokers as well.
Mortgage House
Starting operations as a mortgage broker back in 1986, Mortgage House is a favorable non-bank lender for low doc home loans.
With a low doc option from Mortgage House, you will get features such as an offset account, additional repayments, redraw, toggle, and relocation.
*Toggle feature allows you to toggle between a fixed and a variable interest rate to suit your financial situation.
Pepper Home Loans
Pepper is a non-bank lender specialising in lending to customers who cannot obtain a loan through their bank.
With the ability to consider low doc applications from people with unlimited defaults and court judgements on their CRAA (Credit file), Pepper can help when the banks can’t.
Traditionally, banks tend to be very conservative when assessing low doc loans for customers with defaults even when there is a good reason for the default or the customer has a lot of equity.
Pepper is a “rate for risk” lender. The riskier they deem a loan application, the higher the interest rate that you will be charged.
Rate Money
Rate Money aims to help self-employed borrowers with a team of experienced mortgage brokers.
This is the reason why they are an easy choice for low doc options. They even accept alternative documents such as Business Activity Statement (BAS) and accountant’s declaration to verify your income if you are self-employed.
Unlike most lenders, Rate Money also accepts up to 6 months of casual employment and rental income for servicing.
RedZed Lending Solutions
RedZed was founded in 2006 and is a Melbourne based specialist lender with some niche low doc products.
They are more flexible than most banks regarding the age of the borrower’s ABN, their credit history and their method of verifying a borrower’s income. However, they also charge a higher interest rate and higher fees than prime lenders.
Resimac Limited
Resimac is a non-bank lender which specialises in lending to customers who do not fit the traditional bank lending criteria. Resimac offers a strong suite of low doc products for borrowers with defaults and arrears on their credit file.
During the GFC Resimac did not pull out from the market; however, they were content to sit on the sidelines by reducing their new loan volumes. They are now more aggressive with their lending and we expect them to become a major provider of low doc loans in the near future.
Which low doc home loan lender can help me?
Each low doc lender has its own strengths and weaknesses. To find out which lender can help you in your situation, speak with one of our expert mortgage brokers.
Call us on 1300 889 743 or Enquire online to discuss the right home loan option for you.
