Low Doc Loans

Property Investors will normally use one of three types of loans.

Full Document Loans

Low Doc Loans

No Doc Loans

If you do not have the paperwork for a full document loan and you are able to declare an income then a low doc loan may be suitable for you.

Low Doc Loans are for self employed borrowers and generally must have an ABN and gst registered for two years. Low Doc Loans are still available for the self employed, and small business owners in Australia. Even though there is no doubt that there has been a tightening of credit in Australia, lenders are still lending to the self employed.

The days of the income declaration only low doc loan have currently gone.

Instead, lending institutions are now requiring all low doc loans to be supported by one of three options:-

1/ An accountants letter, or

2/ The last four BAS statements, or

3/ Trading statements from the business entity that is generating the income.

Low Doc Loans  are different to No Doc Loans in that they require an income declaration

No Doc loans do not require an income declaration, and are for company borrowers.