What is a Low-Doc loan? And is it the right solution for me?

What is a Low-Doc loan? And is it the right solution for me?

After speaking with our network over the past couple of months, we sometimes find that people misunderstand what a low-doc loan is and when it may be appropriate to get one.

Every bank has its own particular niche, and understanding the customer and knowing the appropriate bank for that customer through research is an important part of a broker’s job – it’s a part that we, at Pivotal, particularly enjoy. Some banks do low-doc and self-employed lending particularly well.

A low-doc application can be a solution for self-employed people who don’t have (or don’t want to provide) the types of income verification that a full-doc loan demands. For a self-employed person applying for a full-doc loan, the standard documents can be personal tax returns, ATO notice of assessment and full two years tax returns and financials.

By contrast, a low-doc loan income can be verified with BAS returns, business account statements and a letter from your accountant declaring income, solvency and a letter from the applicant self-declaring income.

Just because you are self-employed, it doesn’t mean you are excluded from the property market! If you want to find out more, please reach out to our team at Pivotal, as we enjoy continuing to assist our self-employed clients.

Calculating loan capacity is not as straightforward as it may seem, so enlisting the help of an expert can make all the difference in ensuring you get a product that is right for you. Contact Pivotal Finance’s Graeme Christianson to find out more.