Despite hurdles to become a homeowner, that doesn’t mean you can’t achieve your dream of becoming one. Your mortgage lender may require a lot of documentation to approve your home loan. But don’t worry if you’re a self-employed or small business owner because there are still ways for you to become an owner or property investor.
You don’t need to have a traditional job if you want your dream home. As a self-employed or small business owner, you may not have the documentation such as their latest tax return which is usually required for applying for a loan. This is where a low document home loan is helpful.
What is Low Doc Home Loan?
Low Doc home loans are a good option for many people who can’t provide the documentation banks often require. These types of mortgages may be best suited to business owners, contractors and freelancers because they’re not always able to prove income or employment history with standard credentials.
The home loan finance advisor is also helping you get your hands on a low doc loan regardless of what’s available in terms of documents. Plus, if your credit history is strong, there’s almost no chance that the lender won’t approve this type of mortgage! Along with this, you can also use a low doc home loan calculator to determine whether or not you are eligible for a low doc loan.
What are the essential types of Low doc loans?
At Your Finance Adviser, we are committed to finding the best solution for your mortgage needs. Here we have Mr Rohit Khatak with us, the best Home Loan Broker in Rozelle, and he can help make your dream home a reality! We offer a variety of loan options that can help you reach your property goals, including
Variable Rate Home loans: Variable Rate Home Loans are a type of mortgage with an interest rate that can change over time. This is because rates fluctuate depending on what’s happening in the market. It is beneficial because it allows you to save money when rates are low but be ready for them to increase if they go up in the future.
Fixed-Rate Home loans: With a fixed home loan, your interest rate is set for 1 to 5 years, depending on the agreement you make when signing up. A fixed-rate loan is an excellent option for those who want to avoid the uncertainty of fluctuations in interest rates.
Investment loan: An investment loan is the perfect solution for people who have invested in a small group of properties and want to finance it all at once. These loans are great because they allow you to buy something now that can generate profits in the future.
Owner-occupied home loans: If you want to own and live in your property as well, then an owner-occupied mortgage is just what you need!
How much loan deposit will I require?
While you’re looking to buy a new home, make sure that you have the necessary funds in your bank account. You will need at least 20% of an agreed-upon purchase price, and most lenders require mortgage insurance as well, which can be expensive if not paid for upfront. However, mortgage insurance doesn’t protect you as a borrower; in fact, it protects your lender in case of foreclosure on your home loan.
A borrower needs to save at least 20% of the property value so that lender can find trust in them. For example, if you’re borrowing $1,000,000 for a home loan, you’ll need to have saved up $200,000 plus costs. However, you can use an online low doc loan calculator to estimate deposits based on property value.
What are the essentials requirements to get a Low Doc Loan?
A low documentation loan is a hassle-free, fast way to get the money you need for investment properties. Low-documentation loans are quick because they require little paperwork but still need some crucial documents as verification of income and tax status like:
- ABN (Australian business number) details
- Income proof (last 6 months bank statements)
- Purpose of loan
- Borrower’s credit history
- Previous PAYG payslips
As you can see, A low documentation loan may be an attractive option for borrowers who don’t want to spend too much time filling out paperwork. However, it requires essential documents that prove the credibility of the borrower to lenders.
If you’re looking for home loan options that fit into your budget, then visit Your Finance Adviser today. At Your Finance Adviser, we offer valuable advice to help reach your property dreams – no matter what they look like. Here we have got a team of home loan finance advisers who can help make the process of your home loan journey easier and more cost-effective.
Contact our team for more information about our services.
