If you are looking for a home loan but finding it difficult to attain because you are self-employed without a fixed salary, then you should opt for low doc property finance. In fact, if you do not have a substantial proof of income then it is quite obvious that you might face major hurdles in getting loans from traditional banks. Well, if it is your dream to have your own home, you need to find the right way to acquire it. If you don’t want to get tangled in the process of acquiring loans in traditional banks then low doc property finance is the best choice. In conventional banks you need to provide documents regarding assets, minimum liabilities and proof of a stable long-term income statement. There are various entrepreneurs and mortgage brokers who provide low doc property finance to self–employed people to fulfill their dream of home ownership.
What is a Low Doc Property Finance?
Low doc finance for property are meant for borrowers, mostly self employed or small scale business owners looking for a loan to buy a property. In here, they do not require more documentation and it is most suited for those borrowers who have no PAYG payslip records, financial statements or proper documents on tax returns. A person with inconsistent incomes does not easily get a loan from any traditional bank, because the bank does not only ask for their financial statement, they also require a business activity statement (BAS), profit and loss statement and sometimes references to vouch for your financial status.
Low doc property finance featured on the Australian landscape in the late 1990’s and gradually has gained a lot of impetus as the time progressed. Various non-bank lenders and mortgage brokers emerged during this time that tried to lend money to the self –employed borrower with the least amount of documentation to repay the loan. The major difference between traditional bank loans and low doc finance is the fact that in low doc loans the borrowers are expected to pay more deposit and higher rates. However, this has not depreciated the demand for these low doc loans. Currently, lenders require both documentation and self-certification from potential clients.
The Major Benefits of Low Doc Property Finance:
Multiple options Available: There is a wide array of options available with this type of loan. You can choose after checking the various options, and accordingly select the variable or fixed rate that suits your need. If you want you can try the line of credit option.
Greater Flexibility: The low doc finance loan is highly flexible, where the borrower can select the loan provided with diverse low to value ratio. If you have low credit score, you can be deterred from getting the loan in banks. However, there are many schemes in this loan; you can choose one from them that suits you the best. In here your poor scores will not be a bar in attaining the loan.
No Paper-Proof Needed: This is a hassle–free loan that does not require a lot of documents. Alternative documents are acceptable to your source of income. Unlike traditional banks, you don’t need to submit any tax returns and the application process is also simple. You don’t need to provide any paperwork for this type of loan.
Perfect Mortgage Product: The best part is you can choose the mortgage product that perfectly suits your earning. There are few mortgage products available that keeps the need of the borrower in mind. The mortgage product is specially designed for the convenience of the borrower so that they can repay the debt easily.
Conclusion
Hence, keep the above pointers in mind while opting for the low doc finance to buy your desired property without any hassle. The self–employed borrower can easily get a loan by providing equity or saved deposits.
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