Like any other home loan, you can make sure you're getting a good deal on a low doc loan by looking at:
A lower interest rate makes the loan cheaper. It's the most important factor when comparing home loans.
Some low doc home loans let you make extra repayments so you can pay it off faster. A redraw facility lets you access those extra repayments to spend if needed. And a loan with an offset account lets you save money while reducing your overall interest charges.
Weigh up the loan's overall fees, including application, settlement and ongoing fees. The fewer the fees, the cheaper the loan.
Some lenders let you borrow up to 80% of a property's value. That means a 20% minimum deposit. For alt or low doc loans lenders often require much higher deposits, but not always.
Compared to regular home loans for borrowers with monthly pay slips, low doc loans usually have:
Low doc home loans suit the following borrowers:
Eligibility requirements differ from lender to lender but you will need an ABN and a good credit history.
If your business is well-established or you've been operating in the same industry for many years, with steady cashflow, and you're able to prove it, some lenders may approve a regular home loan.
Make sure you check with a lender before submitting a full application, or talk to a mortgage broker.
A low doc home loan application will require one or more of the following.
Lenders often use different names for low doc loans, including "business home loans" or alternative (alt) doc loans. This is just a small list of some lenders who provide loans for low doc or similar borrowers.
There's no one best home loan for any borrower. It's all about comparing the rates, fees and loan features.
And the best home loan is often the one you can get when you need it. For some low doc borrowers, an existing business banking relationship with a bank makes it easier to get a loan approved.
If you're starting from scratch, have very limited paperwork or past credit troubles, then a specialist lender like Pepper or Resimac might be better placed to help you.
Yes, low doc loans can be refinanced. But before you start considering refinancing your low doc loan to get a better deal, keep in mind that you will need to essentially reapply for a new loan. You may be subject to stricter eligibility and documentation requirements.
If you're refinancing to a new home loan for a better rate, remember that sometimes the easiest thing to do is let your lender know you're thinking of refinancing and ask for a better rate.
Looking for a cheap home loan? Compare loans here
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I would like to do a review of my loan and enquire about business opportunities. Can I make an appointment to see a loan manager.
Hi Richard,
At Finder, we do not offer loans. We just provide general information. You can get in touch with a mortgage broker or contact your chosen lender for assistance.
I hope this helps
Kind regards,
Richard
I would like to borrow 90-95% for an investment property with my current home equity as warrantor for the new loan. Please let me know if you could help
Hi Marcus,
Low deposit home loans typically allow you to borrow up to 95% of the property value. If this is the type of loan you’re looking for, you can view available lenders here.
Please note that this loan program has more rigid application criteria and often comes with additional costs.
Hope this helps!
Cheers,
Richard
I would like to know if there is any possibility of getting a home loan in my situation. My husband and I are both self employed with only 5% deposit. We have no debts. My parents want to guarantee for us.
Hello Lara,
Thank you for your inquiry today. :)
You may consider the low-deposit loans we have featured on our website. It gives you the full-guide on how to apply and which lenders may consider you. Moreover, some lenders may consider giving 100% loan considering that you have your parents’ equity for guarantee. You can read about guarantor loans as your alternative option.
Hope this helps.
Cheers,
Jonathan
Hi there. Can a person on newstart or disability payment obtain a low doc or no doc loan. I have 70% deposit and would therefore only require a loan of 30%. Thank you, Jenny.
Hi Jenny,
Thanks for reaching out.
You can learn more about home loans for Centrelink recipientsand how it works. You can also enquire with a mortgage broker to explore your options. A licensed mortgage broker can help you understand your borrowing power and they can recommend products that will be most suitable for you.
Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you.
Your ability to qualify for a home loan will depend on the lender’s individual criteria, the amount of your benefit that you’re using to service the loan, as well as any other income sources or assets that could be used to repay the loan.
However, if you have a 70% deposit then this may help your chance of being approved but lenders will treat these applications on a case-by-case basis.
All the best,
Belinda
HELLO,
My house is worth $700000 with a $200000 mortgage, which I have been paying off for 5 years without missing a payment. I have recently come in some money, $200000, so I would like to invest in an investment property or 2 if possible.
My thoughts are that instead of paying off my mortgage, I can buy investment property which will pay my mortgage off when the market rises, and I would still have investment property.
I can then refinance and pay off my mortgage.
I am self employed and I have recently had a gap year. Can my financial info be given for the 5 years before my gap year? Can I borrow even though my income on paper has only been $35000?
thanks
Julie
Hi Julie,
thanks for the question.
The answers to these questions will differ depending on the lender you approach, so it might be a good idea to contact a lender for a loan you’re interested in directly to see what their policies are regarding your income and history.
Cheers,
Marc.