What are No Doc and Low Doc Loans?
by Samantha and Nicole
A Low Doc (low documentation) is designed to assist self-employed people who are unable to provide financial statements or tax returns at the time of the application. You will however have to complete an asset and liability statement and the lenders standard application form. Generally lenders will lend up to 80% of the value of the property.
A No Doc (no documentation) requires no asset and liability statement or income declaration; just a signature confirming you can afford the debt. Lenders will lend up to 70% of the value of the property.
What documents do I need for a fully verified loan?
To simplify the application process and give you the best chance of having your home loan approved you will be required to provide the following information:
Proof of income
Last 3 pay slips
Your last financial years group certificate or full tax returns. (Tax assessment notices are not acceptable)
If youre self employed you will require your last 2 years tax returns.
Confirmation of any other income you receive.
Proof of Deposit or Equity
Up to 12 months consecutive bank account statements showing savings if any.
A letter to confirm gifted funds if any.
Proof of Identity
Drivers license and birth certificate or passport.
One of the above and 3 other types of identification i.e ATM card, credit card, Medicare and private health cards.
Before making a decision based on this material, a potential applicant should consider its appropriateness having regard to their objectives