Self Employed

 

Lo-Doc loans were designed primarily for the self employed an non-conforming borrowers who have difficulty substantiating all of their income or have unconventional or erratic income streams. Some lenders will also lend money to PAYG employees.

Products Available

Many lenders offer standard and premium lo-document products with the choice of fixed or variable interest rates.  This means that self-employed people can choose between a basic loan with a low interest rate, a loan with more transactional features and a higher rate of interest or a line-of-credit loan with all the bells and whistles.  To qualify for a Lo-Doc Loan, many lenders require you to self-certify your income and demonstrate a clean credit history.

The Good Points

With less documentation, obtaining a loan is faster due to the streamlined application process. And while interest rates may be higher than a standard loan, you may be able to transfer to a full-doc loan with a lower interest rate, and at no cost, once you can provide the traditional forms of income verification.

Things to Consider

There may be limits on the amount you can borrow (ranges from 60 to 80 per cent of the value of the property). You may also have to pay lender’s mortgage insurance, adding to the cost of the loan.   Lo-Doc Loans are usually penalised by a higher interest rate, a lower LVR or a combination of both.

 

Mortgage Mates can assist you to make an informed decision and take the stress out of becoming overwhelmed with wide choice of loans and products available on the market.  Please feel free to contact one of our friendly, professional Loan Consultants to discuss your loan requirements or make an appointment.  If you prefer, simply complete our online application form and a Consultant will contact you.