How To Get No Doc Low Doc Mortgages
A No Doc or Low doc mortgage is a loan for a property that doesn’t require typical financial documentation to lenders. It can be offered by a mortgage lender to consumers who cannot qualify for normal loan products because of fluctuating or hard-to-verify incomes. Examples include self-employed, immigrants who have recently moved to Australia or unemployed. No doc low doc mortgages require a larger than usual deposit, either through equity or savings.
No doc low doc mortgages aren’t for everyone, and it can be difficult getting approval. The best chance of getting this type of loan is if you are self-employed borrowers who are unable to use tax returns as proof of their income. Supporting documents of the borrower’s income(eg. BAS statements, accountant’s declaration, 12-24 months of bank statements) are still required and the more proof the borrower has, the better the chance of approval. If this is not an option, there are other options to look at for getting a similar type of mortgage.
Look out for lenders that offer great deals on home loans
One option available as an alternative to obtaining no doc low doc mortgages
- Find lenders willing to offer loans, regardless of how bad your credit score is.
- These lenders offer a loan of up to 90% of the property value, including the Lender’s Mortgage Insurance Fee. This is a general charge and compulsory for loans over 80% of property value.
- Alternatively, if there are genuine reasons for a bad credit score, you can have easier access to a no doc low doc mortgage in Australia. Lenders are typically moved when trustworthiness is proven.
Try applying with a specialist lender
Another alternative to no credit checks home loans in Australia is to apply for a home loan with a specialist lender. These kinds of lenders offer home loans irrespective of a single small paid default, giving access to borrowing up to about 90% of the property value. A specialist lender also gives out home loans irrespective of multiple small paid defaults. They offer a home loan of up to 85% LVR provided it is with a major bank. With a moderately paid default or mostly paid defaults, home loans can still be obtained. With specialist lenders, you can borrow up to 90% LVR. If a default of about $3000 has been paid in the former, and borrow up to 90% LVR .with a reason for default in the case of the latter.
Clear your credit and improve your credit score
Another alternative to no doc low doc mortgages in Australia, if all other options have failed;
- Pay off any outstanding debts. This way, your credit score will improve and move to be average or excellent.
- When this happens, many home loan options will become available.
- Credit check has been a major concern of lenders, especially online lenders. It is a significant way to test how trustworthy anyone applying for a loan is to pay. It can be difficult to get access to no doc low doc mortgages in Australia. A good idea is to look into any of the alternatives provided to secure a home loan.