Modern day low doc loans require you to provide additional documents to verify your income.
One of the simplest methods is to provide the bank statements for your main business account.
However this method isn’t accepted by every lender. Read on to find out how your home loan will be assessed and how to get approved.
What are the qualifying criteria?
The specific criteria will vary depending on which lender we apply with. However, as a general rule the following criteria will apply:
- Employment: You must be self employed.
- ABN: Must have been registered for 12 months.
- GST: Must have been registered for 6 months.
- Statements: You must provide 3 – 6 months statements depending on the lender.
- Loan amount: You can borrow up to 80% of the value of your property.
- Credit history: Minor adverse credit history can be considered.
- Property: The security property must be in a good location and good condition.
Please call us on 1300 889 743 or enquire online and one of our mortgage brokers will let you know if you qualify for a low doc loan.
How do lenders calculate my income?
The lender will print off your business account statements and then add up the credits from customers. Credits from your other accounts are normally excluded.
One of our lenders then uses 60% of the total turnover which is then annualised.
Another one of our lenders uses a different percentage of your income depending on the industry that you are in and the total expenses shown in your account.
In other words, different lenders will assess your income in different ways!
By approaching the right lender with the right documents we can help to get your loan approved.
Can a major bank accept bank statements?
Major banks do not accept bank statements as evidence of your income. This method can only be used with our specialist lenders.
Who is this type of loan suitable for?
This loan is suitable for self employed borrowers who cannot provide financials or tax returns as proof of their income.
Most people prefer to provide BAS statements as evidence of their income for a low doc loan as more lenders are available.
However if your BAS statements are not up to date or your bank account shows a higher turnover than your BAS then you have to consider using your trading account statements.
Apply for a mortgage
Do you need help applying for a low doc mortgage?
Please call us on 1300 889 743 or enquire online and one of our mortgage brokers will provide you with several options from our lenders that accept bank statements as evidence of your income.