As per the National Consumer Credit Protection (NCCP) regulation implemented in 2010, banks have tightened their lending policies for low doc loans dramatically.
Now, it is compulsory to present either twelve months’ BAS, six months business bank account statements or an accountant’s declaration for all new loan applications.
Can I borrow with no income evidence?
Due to these changes, the only possible way to obtain a low doc home loan without income evidence is through a no doc home loan. A no doc loan allows the borrower to simply declare that the loan is affordable.
The maximum LVR is frequently lower than a standard Low Doc home loan and the interest rate is much higher. This is inevitable because the lenders view this kind of loan to be a high risk to themselves.
However, please bear in mind that these loans are only available for business or investment purposes (other than investment in residential property) and must be NCCP unregulated.
Another option available is to have an accountant’s letter or low doc declaration completed by your accountant. With this piece of evidence, you will be able to borrow up to 80% of the property value (80% LVR).
How can I apply for a mortgage?
It is imperative to know which lender will accept a low doc loan with the evidence that you can provide.
Enquire online to find the lender right for you or call us at 1300 880 743 to get started! We will help you choose a competitive loan from our panel of specialist low doc lenders.