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No doc loans do not need documents (such as payslips) that prove your income. Home loan applicants without proof of income are risky borrowers from a lender’s viewpoint.
Today, no prominent lending institutions in Australia offer no doc loan. And the lenders who provide no doc home loans ask you to give limited information of income evidence. It is a viable option for borrowers who cannot verify their earnings using PAYG payslips.
When you do not have alternative documentation and cannot prove your income, you can find a no doc home loan. Typically, small private and specialist lenders offer this loan. Based on the lender, it implies the specific terms of the loan. Some may ask you to sign a statement declaring you can repay the loan or perform a credit check.
If your mortgage is secured against a house, then the lender will have criteria around the property you are purchasing, such as the size and condition of the building and location.
A standard home loan can be held up to 30 years, while no doc loans tenure is a little different. Moreover, a no-doc loan always comes with a high interest rate, and the lender may need you to make an exit plan explaining how you intend to repay the borrowed sum.
While alike, there are a few variations between no doc and low doc loans. Both loan types are alternatives for borrowers who are unable to provide standard proof of income.
If you cannot provide any proof of income, you will look into no doc loans. These loans usually ask for 40 per cent or more in deposit and have even high-interest rates. Also, you need to sign an agreement acknowledging you can make repayments.
It is challenging to buy a residential property with no doc loan. Hence, it is always advisable to consult with a lending specialist to learn all your options.
A signed declaration of your income, a signed letter from an accountant and a business activity statement – these are the alternative documents that you can present to the lender that will help you prove your income. Depending on the lender’s terms, you may need to give few additional documents also.
Low doc loans also have a high-interest rate than standard loans and typically ask for more extensive deposits. Besides, you can use a low doc loan to purchase a residential property.
If you are thinking about obtaining a low doc or no-doc loan, it is good to consult with a lending specialist. We can help you decide better based on your current situation.
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”