How to use this calculator
This calculator is designed to assess your situation and identify whether or not you are eligible for a low doc loan.
We can then work out which lenders you qualify with, or which aspects of your situation may be of concern to a lender.
In particular the calculator will assess:
- Your ABN details: Most lenders require you to have your ABN and GST registration for two years.
- Proof of your income: Due to legislation imposed on banks by the federal government, most lenders require some kind of verification of your income such as BAS statements, an accountant’s letter or bank statements. However, some lenders do not require this additional evidence.
- Loan purpose: Many lenders have restrictions on refinances, construction loans or low doc loans in the name of a trust or company. In particular, releasing equity is considered to be a high risk.
- Security property: Since lenders do not have enough evidence of your income, they must be sure that the property you are offering as security can be easily sold. For this reason small units, larger properties and properties in remote areas may not be accepted for a low doc home loan.
- Credit history: Almost all major lenders will require you to have a clear credit history and have perfect repayments on your current debts. There are some specialist lenders that can consider loans to people with a bad credit history, however these lenders are not included in our calculator.
Do you need help with your low doc loan? Please enquire online or give us a call on 1300 889 743. Our mortgage brokers are experts in low documentation loans and know which lenders can approve your loan!
How do lenders assess my income?
With the introduction of the NCCP Act in 2010, the majority of lenders now require some kind of income verification. However, the requirements are not as tedious as those needed for a full doc loan which could include providing financial statements, tax returns and tax assessment notices.
There are many different types of verification accepted by our lenders. However, the majority of lenders will require 12 months BAS statements and will calculate your income using that.
In their serviceability assessment, lenders will consider the minimum of the income you have declared on the low doc declaration, or the income they calculate using your BAS.
Did you know that not all lenders ask for extensive income verification? Some lenders have interpreted the NCCP Act in a different way and still offer simpler low doc loans.
Find out more about low doc loans
Please call us on 1300 889 743 or enquire online and one of our brokers who specialises in low doc lending can help you with a more detailed assessment. Alternatively you can even read more on the low doc home loans section of our website.