Low Doc Mortgages Rates

Mortgages Rates

You can get approved for a Low Doc Mortgages without many documents or a lot of money in your bank. Some lenders allow you to borrow up to 80 percent of the property value, which is lower than the amount of money you would normally qualify for with a conventional mortgage. You may have to pay a higher interest rate, but if you have good credit and enough money in savings, you may be able to qualify.

Low doc loans have a fixed rate or variable rate. The fixed rate is higher, but it will remain the same over the fixed period. Variable rate loans fluctuate with the standard cash rate. In addition, some lenders have split rate options, which let you split the repayments. For instance, you could take a low doc loan with a 20% deposit and borrow the full amount at a higher interest rate, then re-borrow the difference.

Low doc home loans are also great for self-employed Australians, investors, and contract workers. These types of loans are often more affordable than conventional mortgages, and lenders are happy to work with those who do not have a full suite of financials to verify their income. However, the lender will still need to see a recent set of tax returns – even if they aren’t the most recent. If you’re self-employed, you’ll have to provide tax returns for the previous two years to determine your income.

Low Doc Mortgages Rates

Low doc home loans can be obtained from most banks and non-bank lenders, but you may be required to provide proof of income. The lenders will require a bank statement or an accountant’s letter, and you will also need to provide an ABN if your business is GST-registered. Lastly, a good ratio of assets to income is essential for a low doc mortgage. However, this ratio may be too high for you – if you have bad credit or a poor credit history, you might not be eligible for this loan.

To make the best decision regarding which loan you need, talk to an experienced mortgage broker. Not only will an experienced broker be able to help you determine which loan type is right for you, but they’ll also be able to help you compare the costs and features of different low doc home loans. And, the good thing is, if you decide you want to switch to a full doc loan later, you’ll be able to do so, too.

Another way to get a low doc loan is to apply for a Jumbo mortgage. This mortgage is known as a “no income verification” loan because it is larger than the limits set by Freddie Mac and Fannie Mae. Most counties do not allow loans with values over $647,200, but San Francisco does. If you have a lot of assets and income but aren’t sure about your income, low doc loans may be a good option for you.

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