No doc loan
A No-Doc or Low-doc loan loan can be offered with very less documentation of income in application to lenders. This financial product is generally offered by a finance provider or a bank when a customer is not able to qualify for normal lending products. There are many reasons for this including unavailability of documentary proof, fluctuating or hard-to-verify income (e.g., self-employed) ad sometimes its is offered to serve a loyal customer with a positive credit history. Applicants are usually required to provide a substantial down payment in terms of a higher deposit such as equity in security or exhibit personal savings.
Self-employed, unemployed, seasonal workers, and new immigrants generally struggle to meet strict documentation requirements to qualify for a loan. A loan with few to no documentation or credit history requirements is easier to qualify for, but generally carries a significantly higher interest rate.
Low Doc Loans
Residential low doc loans are designed for self-employed borrowers who cannot provide tax returns as evidence of their income. They still require some form of supporting evidence of the borrowers income, typically in the form of BAS statements, although some lenders will accept an accountant’s declaration or bank statements.
The high levels of arrears from low doc loans have significantly reduced the proportion of low doc loans offered by the major banks. Our team can help with the right process of application that goes to offering banks and make the process quicker.