What Is A Low Doc Home Loan?

Published by MFAA

A Low Doc Home Loan is a mortgage created for the self-employed.

If you’re self-employed, you may have found it difficult to get a traditional mortgage. Don’t despair. The low doc home loan has been designed specifically for the self-employed.

The dilemma of the self-employed

If you’re self-employed, the goal of your accountant is to minimise your taxable income. Unfortunately, while this means you pay less tax, it creates problems when you try to borrow. While you might know that you can service a loan, your books don’t back you up, or your paperwork may not be up-to-date. As a consequence, the self-employed often find it frustrating to obtain a Home Loan.

Consider the low doc home loan

While the self-employed often can’t satisfy traditional lending criteria, they can be perfectly capable of servicing a loan. As a consequence, the low doc or lo doc loan was born. Low doc loans don’t require the same level of “documentation” as normal loans. If you have difficulty documenting your financial position with regular payslips, tax returns or business financials etc, a low doc mortgage could be a good solution. However, the cons of low doc loans are generally a higher interest rate and potentially fewer features.

Only borrow through an MFAA member

Low doc loans are available through finance brokers, banks and non-bank lenders. Even with a low doc loan, only borrow through someone you can trust. And that means a member of the MFAA – they are the Essentials of Borrowing. Talk to our team today.

Skybridge Capital is an MFAA accredited finance broker with expertise in commercial finance. Contact us for more information. An MFAA Approved Finance Broker is much more than your average mortgage broker.