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Low Doc Loans are loans which do not require any formal financial documentation from the borrower. Low Doc loans are generally used by self employed business people with lack of financial statements or complex entity structures making proof of income difficult. Tax returns or financial statements are not required
For these loans, you may need to provide the lender with a statement confirming your income generally certified by your accountant or Business Bank Statements or BAS Statements or a combination of above. Compared to full doc, these loans generally carry a higher interest rate and are available only at lower Loan Valuation Ratios (LVRs).
Under the new National Consumer Credit Protection act any loan that is predominately used for residential or personal use will be treated as a coded loan. This applies to investment and owner occupied properties. What this means is that in all cases the funder and the broker will now be required by law to be comfortable that the borrower can service any debt.
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Applicant type
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Individuals, Companies/Trusts
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Employment requirements
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ABN for a minimum 6 months & GST Registered if Income declared over $75,000
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Income: required proofs
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Income Verification is required by either Self Certification or Accountant Verification, BAS Statements or 3 months Business Bank Statements or a combination of above.
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Loan amounts minimum & maximum
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$100,000 > $2.5 Million (Case by Case)
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Purpose
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Residential - Purchase or Refinance, Debt Consolidation, Cash Out, Vacant Land or Construction
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LVR
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Up to 85% LVR (on purchase existing residential)
Up to 80% LVR (Refinance, Cash Out, Debt Consolidation, Vacant Land & Construction)
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Coded, non-coded, or either
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both
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Credit related issues
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Available at higher interest rates
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Paid or unpaid defaults or Judgements up to $550 ignored
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Paid Defaults or Judgements over 2 years ignored.
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Unlimited credit enquiries allowed
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Discharged Bankruptcy over 2 years considered - No undischarged bankrupts or Part X arrangements
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Variable, fixed or both
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Both
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P&I, I/O, or both
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Both
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Loan Term
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> 30 years
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If you wish to proceed, then we will help you to complete all the necessary paperwork and liaise with the lender on your behalf. This will include the completion and submission of your home loan application and the on-going communication between all parties until your home purchase is settled
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