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Low Doc Loans

If you're interested in seeing what kind of mortgages are available for self employed individuals, one option to consider is called a low documentation loan - also known as a low doc loan.
low doc home loans for the self employed

These are a simple type of loan for people who have an income and assets, but are unable to provide the required financial statements or tax returns. The basis of these loans is rooted in the applicant declaring their own income derived from their business, making these products the perfect option for people looking for self employed home loans.

The application process is different for low doc home loans due to the lack of normal documents being provided. If your self-employed you will be asked to supply either a letter from your accountant, a bank statement showing your business income and expenses or a business activity statement (BAS) as evidence of a reliable income.

We specialise in helping self employed people secure cost effective low doc home loans for  personal or investment purposes. We offer a wide range of products, providing solutions for all different walks of life - including low doc home loans worth up to 85 per cent of your property's value with a choice of flexible supporting documents.

Our market leading self employed home loans are highly popular amongst business people seeking a flexible and fuss-free mortgage option. At Red Rock we have been obtaining low doc loan approvals for  self employed business owners for almost 10 years. We have access to a wide selection of low doc home loans that can accommodate a wide range of purposes and preferred supporting document criteria. Below is a table of our most popular residentially secured loan products, each with different features and benefits. For commercially secured low doc loan products see our  low doc commercial loans.

Low Doc Loan Products

Product
Max LVR Doc Requirements
ABN Features/Benefit
 Low Doc 70
 70% Self-Certification + ANY 2 of (Accountants Letter, 6 months BAS, 6 months business bank statements)
 Min 2yrs
Very low rate flexibility, purchase or refinance. Clean credit only.
Low Doc Platinum
 85% Self-Certification + Accountants Letter OR 6 months BAS OR 6 months business bank statements
 Min 1yr
Purchase or refinance, no mortgage insurance, unlimited cash-out. Minor defaults < $1000 considered.
Lite Doc Express  80% Self-Certification + Accountants Letter  Min 1yr
Purchase or refinance, no mortgage Insurance, some cash-out considered.
Low Doc
Easy
85%
Self-Certification + 6mths business bank statements OR 6 months BAS OR Accountants Letter.
 Min 2yrs
Purchase up to 85% or refinance up to 80%, no mortgage insurance, paid or unpaid credit impaired >36 months old ignored, minor defaults ignored.
Low Doc Advantage
80%
Self-Certification + 6mths business bank statements OR 6 months BAS OR Accountants Letter.
 Min 1 yr
Purchase or refinance, no mortgage insurance, unlimited defaults listed >24 months old. Loans up to $2.5 million.
Lo Doc Construction  80%
Self-Certification + Accountants Declaration
 Min 1 yr
Construction of a single residential dwelling.

*Minimum residential loan $250,000. Maximum low doc loan advance $2.5million. LVR means loan to value ratio. Self-Certification means declaration of income. Cash-out means equity release. Contact us for a personal individual assessment and loan quotation. Fees, charges and conditions vary for each product.

Low Doc Loan Options

We have a range of highly competitive lo doc home loans suitable for a variety of purposes including;

  • Loans for property purchases & transfers
  • Refinances with unlimited equity release.
  • Refinance & debt consolidation (inc credit cards, personal loans, car loans, etc)
  • Loans suitable for business expansion or  to replace costly overdrafts.
  • Loans suitable for companies and trust applicants.
  • Choice & flexibility in documents provided, including NO BAS, and NO bank statements options.
  • Loan products with no mortgage insurance.
  • Loans for the payment of tax debt.
  • Low Document Loans to purchase or refinance residential vacant land.
  • Low doc construction loans to build one or more residential dwellings.
  • Flexible self employed low doc loans for commercial purchases and refinances.
  • Specialist lo doc loans for applicants with a less than perfect credit history.

Qualifying for a Low Doc Home Loan

There are three requirements that need to be fulfilled before you can consider applying for low doc home loans in Australia:

  1. You need to be self employed with an active Australian Business Number (minimum of six months old, preferably 12 months)
  2. You need to provide either an accountant's letter or a business banking statement or a business activity statement
  3. You need a minimum deposit or equity worth 20 per cent to put towards your home

How will my Low Doc Home Loan Application be Assessed?

Most lenders look for the following key attributes on your low doc home loan application to determine your eligibility for the loan. These key points are outlined below.

Self-Employed History – Your ABN is a key determinate lenders use to ascertain your length of self-employment. The longer your ABN and GST registration history the better, as it demonstrates your longevity and consistency as a self-employed business person.

Credit History - Your credit history is very important, the lender is relying on your past credit performance in ascertaining your eligibility for new credit. Whilst minor telco defaults and judgments can be accepted a clear or ‘clean credit’ history is the most favorable. In general the age of the default is considered, the older the default the better, as it is more favorable to the applicant if a long time period has passed since the default incident has occurred.

Deposit or Equity Contribution - generally a minimum of 20% is required from the applicant(s) for a purchase or refinance. The maximum loan to value ratio (LVR) is generally 80%, although we do have a low doc loan product that will allow up to 85% for a purchase transaction.

Net Asset Position – Your overall net asset position reflects the financial strength of your application. This is your gross asset values minus your current liabilities. The higher this figure the better.

Repayment History  – When you apply for a low doc loan you may be asked to provide a recent statement on any existing mortgages. This is to demonstrate that you are making the obligated payments on these debts and that they are being managed within your credit limits. For refinance transactions it is a standard requirement that you provide 6 months statements for your existing mortgage(s) to be refinanced and generally 3 months statements for any other debts you wish to consolidate (or pay out) from the proceeds of the loan.

Property Location – This is a key determinant when applying for a low doc loan. Lenders rely more heavily on the location of the property in assessing their risk when lending under a low doc arrangement as they are not relying as much of the applicants income evidence. Most metropolitan property will be considered up to maximum loan to value ratios, whilst regional property will often be considered at lower loan to value ratios.
 
Maximum Loan Exposure – Lenders have prescribed limits to limit their exposure and risk to what is considered a higher risk self employer borrower segment. The most common max exposure per borrower group is $2.5m (i.e a husband and wife’s total borrowings combined) or generally $1 million per loan.

Equity Release – Or ‘cash out’ as it is often referred is where an applicant is seeking to refinance an existing debt and obtain further funds ‘the cashout’ for personal or investment purposes. Some lenders limit of require evidence for the purpose of the cash out when applying under a low doc borrowing arrangement. Most of our products permit unlimited cashout up to 80% LVR.

Why Choose Red Rock for Low Doc Loans?

Red Rock Mortgages are specialists low doc home loan solutions.  Our marketing leading and flexible low doc Loan solutions are highly popular amongst self-employed business people seeking a flexible and fuss free mortgage option.  Talk to us today about the right low doc Loan for your unique circumstances.

News & Articles on Low Doc Loans

Red Rock Mortgages are experts in low doc lending solutions, if your looking for more information about low doc loans that may help you understand your self employed lending options better, checkout our articles on our blog site about low doc loan solutions.

Contact us today for an individual discussion and tailored low doc home loan proposal to suit your unique needs.

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