Low Documentation Home Loan – A Mortgage for Small Business Owners
Setting up your own business means you're your own boss. Having a small business owner means having a lot of flexibility. For example, being self-employed means, you can decide for your own holiday even whom you want to work with. But what is not under your control is getting a loan as you expected. Australian lenders often hesitate to provide loans to those who don't have a regular income.
Although there are some limitations – it doesn't mean you can't get a loan. A low doc home loans Australia is a mortgage option for small business owners, self-employed, freelancers, constructors. It can fulfil your dream of owning a home, plus you don't need any unnecessary documents for your loan application. Read on further to get more info about low-doc loans.
What to know about Low Doc Home Loans?
Low doc home loans in Sydney are viewed as a higher risk by banks and lenders. It is because you don't have an obligation to provide income evidence. Since, as a low-doc borrower, you are considered as a higher risk, banks apply a loan to valuation ratio (LVRs), higher interest rates, and fewer loan features to full-doc loans. Unlike low doc loans, if you opt full document loan, you need to provide:
- Tax return documents
- Business activity statement (BAS)
- Accountant's letter
- Past 6 months bank transaction statement
What do lenders look at when accessing loans to you?
Since every lender has different policies, it is important to understand the criteria mandated by most lenders.
ABN/ GST registration length – When you apply for low-doc loans, you need to provide ABN or GST registration details within the loan application if you generate sales over $75,000. Usually, lenders want ABN to be registered for 2 years to ensure that you are a trusted borrower.
Good Credit History – In most cases, Australian lenders and banks do not approve your low doc home loan application if you have problems with your credit history. So, consult a home loan broker to improve your credit score and enhance your chances of getting a home loan.
Income declaration – Lenders want to ensure that the borrower's income and assets are consistent with their age and business.
Need Low Document Home Loans in the near future? Visit Your Finance Adviser. We are known as the leading finance advising company and have been helping individuals and business clients to attain their dream of buying property in Australia.
For more assistance, speak to Mr Rohit Khatak – Home Loan Broker Rozelle.