Low Doc Loans

Low Doc loans have been very useful in the past for self employed and PAYG employed applicants to obtain finance. The majority of loans offered were for self employed applicants. However, since the GFC (Global Financial Crisis) which was primarily a result of Sub Prime (or Non Conforming Lending) and Low Doc loans, Low Doc Loans are now not as simple to obtain approval with the majority of lenders. Some of the policies that may have been altered are listed below:

Low Doc Loan have had various versions of the following policy restrictions applied:

• Reduced LVR Limits - Loans that were available at 80% LVR have been reduced to 60% LVR or lower.
• Restrictions on refinancing Low Doc Loans - Some lenders can only offer low doc loans for purchases.
• Provision of Bas Statements - Some lenders require bas Statements to substantiate declared income.
• Trading Statements - Lenders may wish to see cash flow through a savings account.
• GST Registration - Various requirements for GST registration. ie >2 years registration or registration at the time of ABN.
• Minimum 2 years ABN Registration
• Cash Out restrictions
• And many more