What documents do I need for a low doc home loan?

If your business is new or your financial records aren’t up to date, a low doc home loan could help you get closer to your homeownership goal.

The documents needed differ from a traditional home loan, which could bring you greater flexibility.

Here’s the low down on the paperwork involved.

What’s the difference?

As part of your home loan application, many traditional lenders require extensive documentation going back at least two years. With a low doc home loan, you need fewer proof-of-income documents.

Rather than relying on PAYG or PAYE payslips, specialty lenders use alternative forms of income verification. For this reason, low doc loans typically suit self-employed business owners, investors, and contractors.

What documents should I prepare?

The exact documents you need to provide will depend on your chosen lender and what insight they need to understand your income position. These may include:

• Business and personal bank statements

• Signed letter from your accountant

• Your ABN and GST registration

• Business Activity Statements (BAS)

• Tax returns (if available)

Some specialty lenders may allow you to apply for a low doc home loan with a signed declaration stating you can afford the repayments. Keep in mind this type of loan typically comes with higher fees and interest rates.

Anything else I need to know?

While low doc home loans are great for getting a foot on the property ladder, they generally require a larger deposit amount. Depending on the lender, you may also be charged a higher interest rate. So, it’s wise to compare your options.

Finding the right lender

When it comes to finding the right loan, a broker or loan adviser is best equipped to help you navigate the lending process.

If you’re ready to explore the flexible solutions available, speak with a Liberty Adviser today – they can help you get to yes sooner.