Low-Doc Home Loans
Are you seeking more information on obtaining a Low-Doc home loan?
Chardon is here to assist you in finding a Low-Doc home loan that meets all your requirements.
We're Here to Help
Getting a low-doc home loan can be complicated.
Let us help you.
Get Approved
We are experts at finding lenders that will approve Low-Doc home loans.
Multiple Options
We have a vast network of lenders that will offer
Low-Doc home loans.
What is a Low-Doc home loan?
A Low-doc home loan is a mortgage that borrowers can take out with less documentation than what is required for a standard home loan.
If you’re self-employed, freelancer, casually employed, contract worker, or someone who doesn’t tick the usual loan application boxes, a low doc loan option will help you buy your dream home.
Also referred to as alt doc home loans by a few lenders, it is the only way to borrow with less or alternative paperwork and financial documentation.
What do I need to be on the lookout for with low-doc loans?
Low doc loans are a higher risk to financial institutions, so they tend to place more significant restrictions on this type of loan.
There are very few lenders that offer low doc solutions, while others have significantly increased the interest rates they are applying.
We’ve outlined a list of potential issues to look out for:
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Higher interest rates:
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This will mainly depend on the lender and the type of verification or supporting documentation you can provide. Some of our lenders offer the same low rates as they do for full documentation home loans.
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Larger deposit:
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20% of the purchase price is typically required, although some lenders require less.
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Lenders Mortgage Insurance (LMI):
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Mortgage insurance is usually applicable if you borrow over 60% Loan-to-Value Ratio (LVR).
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Low-Doc Home Loan Requirements
There are a number of factors to consider when applying for a low-doc home loan.
What documents will I need?
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12 months’ BAS statements showing a high turnover.
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An accountant’s letter verifying your income (sometimes lenders might call the accountant to verify the letter).
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Business bank statements showing a high turnover.
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Interim financial statements.
Length of ABN/ACN company registration
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Most lenders will require you to be registered for at least 2 years and also be GST registered.
Total Exposure to Debt
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Most lenders will lend to borrowers with debts under $1M.
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Some lenders will allow borrowers with a joint capacity of up to $2.5M
(eg: Husband and Wife)
Who can benefit from a low-doc home loan?
Low doc home loans are designed to assist those who have a deposit saved or have existing equity in a property but are self-employed and have difficulty proving their income.
Low documentation lows could benefit the following:
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Business owners like sole traders, people in partnerships, or company owners who cannot provide full financials due to complications in their business structure.
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Businesses that have grown significantly in the most recent financial year compared to the previous financial year; hence, their current income evidence does not reflect their actual earnings.
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Professional investors, people with fluctuating incomes or people who have had a low income in the last financial year.
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Self-employed, freelancers, or casual workers as minimal documentation is required to qualify for this type of loan.
How does it work?
With Chardon Home Loans, we take a personalised approach to help you get your low-doc home loan approved from our network of specialist lenders.
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Book a meeting with one of our brokers
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Provide us with some information about your financial situation
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We find lenders that offer a suitable loan solution
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Submit your loan application
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Get Approved!
Eligibility and approval is subject to standard credit assessment criteria.
For more information please download our credit guide.
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