| The Australian mortgage industry has matured | | | | income. This normally prolongs standard investment |
| considerably over the years and has started offering | | | | loans. There are mainly three types of low doc home |
| some of the best mortgage options to residential or | | | | loans available. |
| commercial loan seekers. The old tag of the mortgage | | | | NO RATIO LOANS: this loan is for those who don't |
| industry being too rigid and overall having a painful | | | | want to declare their income before anyone. Hence, |
| cumbersome loan process has been almost | | | | there is no debt for income ratio for the consideration |
| completely wiped out and a new trend has emerged | | | | of the loan lender. This type of loan can give a very |
| which has seen a lot more home loans or mortgages | | | | quick and easy process for those who think that an |
| being approved in a record amount of time. | | | | income citation is going to be their worst nightmare |
| It has never been better for the Australian consumer | | | | while applying for a loan. As the lender is taking added |
| to apply for any kind of home loan or mortgage with | | | | risk by not requiring any verification of income they will |
| the mortgage companies themselves making life much | | | | generally not lend as much against the value of the |
| easier for the person applying for the loan. Mortgage | | | | security property. |
| consultants now go above and beyond helping their | | | | NO DOC LOANS: for obtaining this loan, the 'no doc |
| customers choose the right loan for themselves. Each | | | | loan' requires the minimum number of documents and |
| type of loan is carefully explained and it is made sure | | | | documentations. The loan lender goes through the loan |
| that the consumers ultimately choose the loan that is | | | | request from the borrower with no financial |
| best for his or her situation. | | | | documents at all and maximum privacy is given to |
| One of the options that most mortgage corporations in | | | | these loan candidates as well. |
| Australia offer to their customers is the low doc home | | | | STATED-INCOME (LOW DOC) LOANS: for someone |
| loans option. This is a loan that has seen a lot of | | | | whose income is fluctuating every day, week or |
| activity recently and is gaining popularity with | | | | month, the stated income loan is the best. But this type |
| consumers. | | | | of loan requires the borrower to show his earnings for |
| Low doc home loans are a mortgage or home loan | | | | the minimum of two years initially and he also has to |
| where there is no requirement to verify your income. | | | | show tax returns and all other bank statements. |
| But all other documents are required as they are with | | | | Although low doc loans obviously have appeal for |
| any other type of home loan. This loan is ideally suited | | | | those who perhaps don't have their financial |
| to self-employed individuals, contractors who are | | | | documents in order or have privacy concerns, those |
| working independently and investors. This loan type | | | | who have low incomes that would not be sufficient to |
| also suits people with enough income but who don't | | | | qualify for a standard variable rate loan, should not |
| want to waste time in bank verification and other time | | | | resort to overstating income on a low doc application |
| consuming processes. Borrowers should be aware | | | | in order to borrow. Lending guidelines are there to |
| that with low doc style loans a default or similar | | | | protect both the lender and the borrower - defaults |
| negative listing on your Credit Reference will make you | | | | traumatic for both parties and a mortgagee sale is |
| ineligible for low doc finance. | | | | almost inevitable if income is grossly overstated, |
| A low doc home loan has an interest rate a little higher | | | | particularly when the borrower is already under |
| than normal types of loans and mortgages. This said, | | | | financial stress. |
| with some lenders the rate will reduce to their | | | | By consulting with your experienced mortgage lender |
| standard variable rate after say a 2 year period, | | | | you can find out whether low doc home loans are a |
| provided you have meet all your interest payments on | | | | good option for you. They are in the best position to |
| time. This loan is largely for those who want to buy | | | | check which type of loan is best for you and make |
| investment properties, refinance their existing property | | | | your life that much easier. |
| and who do not have current taxation returns on their | | | | |