Low-doc home loan



Low doc home loans basically require less documents to support your home loan application.  This type of home loan product is especially useful to self-employed and casual workers, who typically may struggle to provide enough evidence of income.  Previously, self-employed workers have found getting a mortgage very difficult because of this.  Low-doc home loans provide an opportunity for purchasing property.

To approve the loan, a lender will require you will need to sign a declaration stating your income and in some circumstances you may need to provide a statement from your accountant. 

These loans usually have a higher interest rate than normal, although the more financial documentation you can provide, the lower the rate may be.  You also may need a higher deposit, up to 20% of the value of the property.  The lender will also charge mortgage insurance, and they may look for other assets to secure the loan, such as a car or other investments.  With all these extra costs it is important to consider a low doc loan very carefully.  Often, the loan period is shorter, and you will need to refinance after the initial term.

Although low doc loans have many benefits, there are also many other things to consider.  The higher fees and charges can be more than some people can afford so it is important that you look at all the options and decide whether this loan is for you.

Found in: Article (797), Section (51)

Bank Fee Income Reaches $12.7B

This income is brought about by rise in charges on loan reprising, home loans, among others.
Found under: Banks

Demand for home loans Plunges

mso-para-margin-left:0in; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} endif--> Home loan demands have declined for six consecutive months, from October last year to March, due ...
Found under: Home Loans > all other products

Queensland First Home Buyers, Lowest in 6 Years

font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} endif--> Number of first home buyers in Queensland has been thinning, which recently recorded its lowest in six years.
Found under: First Home Buyers

Additional $4000 Grant for First Home Buyers

mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} endif--> The Queensland Government will give an additional $4000 grant to first home buyers in areas outside of south east Queensland.
Found under: First Home Buyers > Buying Your First Home

NAB Satisfaction Picks Up while Westpac Fall

can be brought by a number of factors like basic banking fees reduction and enhanced home loan pricing.
Found under: Banks > National Australia Bank

Credit Unions Gaining Market Share

mso-hansi-theme-font:minor-latin;} endif--> One in every ten borrowers are now using a mutual bank for home loan, according to Abacus, the organization representing the Australian mutual sector, which includes the credit ...
Found under: First Home Buyers > Buying Your First Home

Perth First Home Buyers Market Down

grant, coupled with unrelenting interest rate hikes concludes into the collapse of Western Australia’s first home buyers market.
Found under: First Home Buyers

New Laws in Home Loans Put Violators to Jail

if found guilty for not providing consumers with independent guidance in finding the best home loan options, according to the Australian Securities and Investments Commission (ASIC).
Found under: Home Loans > all other products

Brisbane and Perth, Most Expensive Homes in Australia

mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} endif--> Brisbane and Perth are the most expensive cities to buy a home in Australia, the Council of Australian Governments Reform Council report shows.
Found under: Real Estate & Property

Australian Borrowers Face Greater Risks

Cost of home also soared by 20% in March, according to the Australian Bureau of Statistic.
Found under: Industry

Focus on Homeloan Weakens Economic Growth

Meanwhile, according to Joseph Healy favoring home lending may mean less credit to allocate to business. ... is funded by higher business loan rates while it seeks to boost mortgage market share.
Found under: Home Loans > all other products

Interest rates on hold - RBA

especially when their actions in curtailing lending for residential development are already harming the new home building recovery,’’ he said.
Found under: Industry > Interest Rates

Increased Super Benefits and Tax Breaks on the Verge

Some concessions are also made to first home saver accounts which will give the first home buyers a greater chance to save more.
Found under: Industry > Government & Policy

Macarthur Region Now Feels the Effect of Rate Hike

The Macarthur area is where first home buyers find more affordable houses for the past 15 months.
Found under: Home Loans > Affordability

Auction Market Slows Down

First home owners do not usually enter the auction market for their first purchase, while majority of the auction market players are upgraders and investors, Bell explicates.
Found under: Real Estate & Property > Prices & Trends