What to ask your low-doc lender

Low-doc loans are designed for people who wish to borrow to buy a property but cannot provide the documentation that is generally required for a standard loan. They are offered by non-bank and traditional financial institutions. If you are seeking a low-doc loan, make sure you ask the following questions before you sign on the dotted line.

1. Is there a maximum number of debts I can consolidate with a single low-doc mortgage?
2. If my partner is a PAYG employee, can I still borrow money for a low-doc mortgage?
3. What proof of my income do you need to see?
4. What is the situation if I am partly self-employed and partly PAYG?
5. If I have had my ABN for less than two years, will this affect my application?
6. Are there any postcodes or types of properties that are unacceptable for low-doc loans?
7. Can I supply my tax returns at a later date and become eligible for a lower interest rate on a full-doc product?
8. Do you offer any interest rate reductions after a period of time and if so, under what circumstances?