Low Doc loans

A low doc loans is a mortgage that requires minimal paperwork to apply in exchange for a higher interest rate. Low doc loans are popular among home buyers interested in getting a mortgage fast without having to provide extensive personal information.

Also referred to as stated-income loans, low doc loans attract people who don’t draw a regular salary. Working on cash or commission basis, this type of borrower will need to disclose earnings, usually for two years, and might need to show tax returns and bank statements when they apply for this low doc loan.

This minimal documentation is designed to help meet the unique needs of people who are self-employed, work on cash or commission, or for borrowers who have difficulty documenting their income.

Qualifying is more flexible for low doc home loans because no income verification is needed. It might be beneficial for you to pay a higher rate for a no or loc doc loan. Our mortgage bankers can also show you how to obtain the necessary documentation.

Types of Mortgages

Lake Macquarie Mortgages & Commercial Finance will help you decide which plan is best for you. It is always a good idea to do a little research on what kinds of plans are available, so that you can better understand the plans proposed to you. Briefly, here are some of the types of loans you might be considering.

Repayment mortgage: This is the most common, and is the simplest to understand. Repayment mortgages work on a time-line basis, and unless there is a problem with your payment schedule, your loan will be guaranteed to be paid in full by the end of your commitment.
Endowment mortgage: This type of loan is paid bi-monthly. The first payment is for the interest on your loan, with the second being a fee paid to an insurance company for an endowment policy.
Interest only mortgage: This plan focuses on paying back the interest accrued first, leaving the capital owed to be paid at the end of the payment schedule.
Pension mortgages: This mortgage is also paid in two categories, bi-monthly. The first payment is for the interest on your loan, and the second is for a pension policy premium.

Protecting Your Home Mortgages

When acquiring a home equity loan, you will consider home mortgages payment insurance. In the event you are not able to pay for your monthly bill, this type of insurance will assist you.

Without this insurance, and in the event of a financial mishap, you could lose your home. There are several types of this insurance coverage, and they will vary depending on your financial background, whether you are self-employed, as well as whether you are a part-time employee.

After considering your options, it’s time to apply for a home mortgage loan.

Email Lake Macquarie Mortgages & Commercial Finance and arrange an appointment.

Once you apply, you will have a clearer picture as to exactly what types of loans are available to you for your financial situation.