Question 1

Should I refinance my mortgage if my tax returns are not up to date?

Accepted Answer

Yes, provided your business cash flow is strong. Waiting for tax returns to be finalised before looking at mortgage refinancing often means staying on an overpriced default interest rate for an extra 6 to 12 months. A low doc refinance uses your recent BAS or bank statements to move you to a sharper rate immediately.

Question 2

What information do I need to provide to lenders?

Accepted Answer

At Low Doc Loan Experts, we work closely with you to compile your application based on the information you’re able to give us. Most lenders like to see a detailed assets and liabilities statement and an income declaration form signed by an accountant. Ideally, it helps to have your BAS and details of previous tax returns – however, we can secure great low doc loans with much less.

Question 3

What is a Certificate of Income Declaration form?

Accepted Answer

This form, signed by an accountant, stands as a declaration of your earnings when your taxable income is yet to be assessed by the Australian Tax Office. We can connect you with trusted, qualified accountants who can prepare this on your behalf.

Question 4

What's the difference between a 'low doc' and 'no doc' loan?

Accepted Answer

Typically, no doc loans only require a declaration stating you’re able to make the required loan repayments. Unlike low doc loans, you don’t need to provide the details of your assets and liabilities. Low Doc Loan Experts have access to ‘prime’ lenders who carry out credit checks, investigate your repayment history and, consequently, don’t charge higher rates for these types of loans.

Question 5

Are low doc loans only for the self-employed?

Accepted Answer

Yes. Due to changes in the NCCP (National Consumers Credit Protection) Act, lenders will now only accept applications from self-employed customers with a registered ABN.

Question 6

What are the interest rates associated with low doc loans?

Accepted Answer

Lenders tend to charge slightly higher rates and fees for low doc loans because of the increased risk. At Low Doc Loan Experts, we have access to a wide range of lenders offering low doc loans at standard rates. Our goal is to secure you the most competitive loan available.

Question 7

How much can I borrow?

Accepted Answer

How much you can borrow depends on your individual financial situation and available deposit. Typically, lenders will not approve low doc loans higher than an 85% loan to ratio value (LVR).

Question 8

What's an LVR?

Accepted Answer

LVR is short for loan to value ratio. The LVR is calculated by dividing the loan amount by the value of a property and multiplying the result by 100.  
For example, a loan of $600,000 on a property worth $1,000,000 would have a 60% LVR.

Question 9

Are there any restrictions with low doc loans?

Accepted Answer

Most restrictions relate to a borrower’s ABN. Some lenders require an ABN to be older than 6 months, or registered for GST. Others only require registration for GST if the self-declared income is over the GST threshold ($75,000 turnover p.a.).

Question 10

How do I apply for a low doc loan?

Accepted Answer

Low Doc Loan Experts can help you prepare and lodge your application. Speak to one of our live chat operators or give us a call on 1300 781 680.

Question 11

Can I switch from a low doc loan to a full doc loan down the track?

Accepted Answer

Absolutely. One of our primary goals is to ensure you have the flexibility to transfer to a full doc loan when you’re ready. We believe low doc loans are your steppingstone to standard loans in the future.

Question 12

Do you charge a fee for your services?

Accepted Answer

Our services are mostly free as we are paid by the lender. On rare occasions, the commission paid by the lender doesn’t cover the service time required, in which case we always advise the client upfront. These situations are rare; usually when the loan amount is small or a file is so complicated it requires extra time.

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