Low Doc loans are a simple abbreviation for Low Documentation Loans. They are also sometimes referred to as No Doc loans but mean very much the same thing. If you have limited financial records then this type of loan may suit you. Low Doc loans are becoming increasingly popular and are replacing the more traditional form of loan where a person would need to provide much more information in order to get approval. A large choice of these loans are now available from a variety of lenders.
Low Doc Home Loans, for instance, are available for up to 90% of your property valuation. You may be earning income which is hard to prove in the paper based format required by many home loan lenders. The bottom line is you know how much you earn and can afford, so why should you need to provide mound of paperwork to prove it?
Low Doc home loans are available for all purposes including first home loans, investment home loans, equity home loans, home loans for business purposes... in fact a low doc home loan can be used for all of the same purposes as a fully documented home loan.
Home loan interest rates were historically increased for low doc home loan applicants. Now, with the competition for business, many home loan providers will allow you to access the same home loan rates as you would with a fully documented home loan. Yes your low doc loan rate or your no do loan rate may be as competitive as if you had all the documentation in the world.
Lo Doc home loans provide an excellent solution for the home loan applicant that prfers to disclose as little as possible about their assets and liabilities. Many people that own their own business, tradespeople, subcontractors even doctors and lawyers often favour this choice of loan. No Doc home loans are available with little more than name, address and property details of the applicant. There is no declaration of income required only your personal declaration that the repayment is affordable. This is an excellent home loan solution for the person, or company, that is asset rich but cash poor.
Online lenders make the process of home loan application even easier. They provide free quotes at competitive rates and can even sometimes outperform the major banks because their overheads are usually lower. No need to make interview appointments because all you need is access to the internet. Here is a list of online lenders that offer competitive rates on a range of products with superior service. Feel free to check out what they have to offer:
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