Low Doc Home Loan Lenders
Finding the right Low Doc Lender
There’s more than just the interest rate to think about.
You'll need to consider:
1. Lenders Mortgage Insurance
2. Risk Fee
3. Application fee
4. Borrowing Capacity
5. What income verification documents are required
Each lender has its quirks; it's best to use a mortgage broker to walk through your options.
What Documents do I need for a Low Doc Loan?
- Most lenders require a 20% deposit and an ABN at least 24 months old.
Need to watch more than just the interest rate
There may be other hidden costs. To find out which loan is the cheapest, take a holistic approach and look at the cost of the loan including fees & charges.
Some lenders will charge a risk fee if you borrow more than 60% of the property value. These fees can vary significantly between different lenders. And some lenders don't even charge them.
Low doc loans can transition into Prime loan
Your mortgage broker will help you transition into a prime loan after a couple of years when your financials are all up to date.
When choosing your low doc lender, it's more important to consider the application fee and risk fee, rather than just the interest rate.
Average these costs over the likely length you will keep the loan. This gives you a true comparison between different options.
Make sure your mortgage broker is skilled with Low Doc Loans
Low doc & Alt doc loans need to be presented correctly the first time. This is because, unlike prime loans, low doc lenders usually give you only one chance to get it right.
You may have never heard of some of our lender panel; there is a lot to consider in the low doc space.
Contact me to discuss your options.
Matthew Stack - Mortgage Broker
0423 237 242
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