What are Low Doc and No Doc mortgage loans?
Simply put, if you have no or limited ‘financials’, some lenders are prepared to offer some flexibility in assessing your mortgage loan application. What this means is, you can either do one of two things: Low Documentation Mortgage; You simply self certify your income. Basically, a borrower declares their estimated income for the current (or last) financial year to the lender, who then uses that stated income as the benchmark to demonstrate your capacity to repay the mortgage. You may be asked to provide supporting information such as BAS statements, Bank account statements or perhaps a request to have your Accountant sign an income verification letter, but again this is dependent on a number of factors, products & lenders. No Documentation Mortgage; This type of loan was once offered to investors or business owners who are using the borrowed funds for non domestic purposes only. The loan to value ratio is generally reduced to 70% or less of the value of the security property (residen
