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.
- Is there a maximum number of debts I can consolidate with a single low-doc mortgage?
- If my partner is a PAYG employee, can I still borrow money for a low-doc mortgage?
- What proof of my income do you need to see?
- What is the situation if I am partly self-employed and partly PAYG?
- If I have had my ABN for less than two years, will this affect my application?
- Are there any postcodes or types of properties that are unacceptable for low-doc loans?
- Can I supply my tax returns at a later date and become eligible for a lower interest rate on a full-doc product?
- Do you offer any interest rate reductions after a period of time and if so, under what circumstances?
Published: 10 October 2006