Some Lenders will allow you to borrow up to 95% of the purchase price of a property without producing any financial statements. In some instances you dont even have to state your income at all. These loans are able to be used for both Investment or Owner Occupied purposes. And these loans are available to Self Employed & P.A.Y.G applicants.

The 3 main factors that determine the amount that the lender will allow you to borrow against the property value is based on the postcode where you are buying the property, your employment history and your credit history. The lower the Loan to Valuation Ratio (L.V.R is explained below) The lower the Home Loan Interest rate that you get allocated by the Lender. 

L.V.R means - Loan to Valuation Ratio.  E.G  If you were borrowing $60000 and the value of the property was $100000, then the L.V.R would be 60%................ LOAN divided by VALUE = RATIO %

The type of loanwhich you qualify for (No or Low Doc) depends on your work history & deposit. These factors determine whether you are eligible to borrow without stating your income -(No Doc Loan) Or whether you have to certify in writing your gross yearly income - (Low Doc Loan). This is a loan that you can certify by writing your income on the loan application form, but you cannot verify your income by tax documentation or payslips. (Lo-Doc Loan incomes are not verified or checked by the banks, they take your word on what you have written on the application form).

The Lenders will even allow you to borrow for these types of loans when you have had a spotted credit history. The Interest rate the lenders assign will be based upon the risk factor that the lenders assessor determines based on the time frame that has passed since your past credit impairments, the nature of your impairments and your current work history.

The Difference Between a No & Low Doc Loan

A Low Doc Loan is where you have to certify your gross annual income on the loan application. The income figure that you state on the loan application is not scrutinised by the Lender and is not checked. The down side to a Low Doc Loan is that the Australian Taxation Office has the power to audit your application at any stage after the application has been submitted to see if the income figure that you stated on the loan application matches the figures in your tax return that you lodged that year. 

A No Doc Loan has a distinct advantage over a low doc loan, where you are not required to certify your income. This is a straight Asset Lend. This type of loan is not audited by the A.T.O.

If you would like to find out which loan you qualify for, and how much you are capable of borrowing based on your deposit or your properties equity. Please complete our Enquiry Form.