If you are unable to verify your income, then a low doc or low documentation loan may be perfect for you.
Many lenders have strict rules when it comes to loan approval, which is why many people struggle to obtain a home loan. Without proper documentation, many people are finding it difficult to fulfill their home buying dreams.
That’s why low doc loans are so important. They are designed to help people who are eligible for a loan, but do not have a way to prove their income.
In Australia, there are many types of low doc loans. For example, there are Westpac low doc, ANZ low doc, and CBA low doc loans. Low doc loans are offered by many different lenders which are a good thing because that means more people will have the opportunity to fulfill their dream of home ownership. For more detail you can visit
Is There A Real Need for Low Documentation Loans?
Low doc loans were created to help people who were unable to get approved for a loan because they did not have a way to prove their income. In order to get approved for a mortgage, you need to have a steady source of income. This is a major requirement for all lenders because they want to ensure you can pay back the money they lend you in the form of monthly mortgage payments.
What About People Who Don’t’ Have Permanent Employment?
There are many people who do not work for one employer or company. Contractors, freelancers, and other self-employed people may make a good income, have the ability to pay a monthly mortgage, but because they do not have a job or contract with a particular company, they might not have the documentation needed to prove their financial status.
Not being able to buy a house because of technicalities can be a frustrating experience. Even though you can afford the house, a lack of paperwork could make it impossible for you to become a homeowner.
How Can A Borrower Obtain This Type of Loan?
There are two ways a person can handle being turned down due to a lack of permanent employment. They can try to get work with one company or employer or they can find another means of approval without having to submit specific income documents.
If you’re making good money at your current position or business, then the first choice is not a viable option. So, the only option you have is to find a way to get approved, without having to submit documentation you don’t have.
Low doc loans are not no-doc loans. However, they do not require the same amount of paperwork. Most lenders can process the application using alternative methods to check a borrower’s income eligibility. These lenders will accept alternative income proof, which makes things easier for everyone involved.
How Hard Is It To Get a Low Documentation loan approval?
It’s not hard to get a low doc loan approval. The main difference between this type of loan and a traditional loan is that you will not be required to submit the same amount of paperwork.
The loan itself is designed to make the application process easy and fast. With a good mortgage broker, you’ll be able to learn the steps you need to take, so that the process can go smoother. A mortgage broker will leave no room for errors and will guide you in the direction of the right lenders for your low doc loans.
Who Are Some Of the Lenders That Offer This Type of Loan?
In order to get a full list of the lenders that offer low documentation loans, consult your mortgage broker. They can provide this information and also explain how you can apply for a low-doc loan, like the CBA low-doc.