Tuesday, March 29, 2005

Low Doc Loan Australia

What is a Low Doc Home Loan?

Low Doc (short for Low Document) home loans are a recent innovation and are targeted at contractors and the self-employed, who often lack current tax and financial records. Traditionally it has been more difficult for the self employed to obtain loans because banks had a preference for borrowers on guaranteed (ie PAYE) incomes.

The Low Doc Home Loan helps borrowers with irregular cash flow or who may not have current financial statements, providing they have sufficient equity in an existing property or other assets.

Low Doc loans can be variable or fixed rate loans, or lines of credit, and may include an offset facility.

Low Document loans attract a higher rate of interest than other types of loans because lenders perceive the risk involved to be greater.

Because the employment situation is changing, bank and non-bank lenders have had to become more flexible in their approach to lending and so Low Doc loans are becoming more common.

Visit our Low Doc Loan Australia web-page for detailed information.