Low Doc Home Loans for the Self Employed Australian.

It is difficult for the Self Employed Australian to qualify for a mortgage from a bank compared to a PAYG worker. A PAYG worker generally only requires 2 payslips to substantiate income while Self Employed would require 2 years of lodged profitable financials.

Financial statements and tax returns aren’t required for low doc loans, however lenders will need some form of confirmation of income. This can be from a declaration of income certified by your Accountant or Business Bank Statements or BAS Statements. Other options for Self-Employed (company directors only) includes supplying 3 months of recent payslips AND last financial year ATO income statement.

What mortgage options exist for self-employed borrowers with limited financial statements?

Our Low Doc Home Loans are available for both Clean Credit and Bad Credit  and low credit score applicants. Low Doc Loans are available for Purchase or Refinance, Debt Consolidation, Construction and Cash Out. 

Residential Zoned Property to 95% LVR for purchasers with cash out to 90% (plus capitalised risk fees) and to 85% LVR on Vacant Land or Construction (high population areas only)

A Low doc home loan is a great solution for the Self Employed Australian that does not have lodged Tax Returns.

Self Declaration of Income plus one of the below documents to support your declaration:

• An Accountants Letter verifying your income.
• 6 months of Lodged BAS Statements from the ATO Portal.
• 6 months of Business Bank Statements.
• Self-Employed (company directors only): 3-months payslips AND last financial year ATO
  income statement.

Low Doc Residential Property Loans (case by case and subject to location)

1. $3,000,000 between 75% > 95% of Property Value.
2. $7,500,000 between 70% > 75% of Property Value
3. $10,000,000 between 65% > 70% of Property Value
4. $15,000,000 up to 65% of Property Value

Low Doc Vacant Residential Land Loans (up to 5 acres case by case and subject to location)

1. $5,000,000 to 70% of Property Value
2. $3,000,000 to 75% of Property Value
3. $1,000,000 to 85% of Property Value

Low Doc Construction Loans (case by case and subject to location)

1. $2,000,000 to 70% of Completed Costs
2. $1,750,000 to 75% of Completed Costs
3. $1,500,000 to 80% of Completed Costs
4. $1,000,000 to 85% of Completed Costs

High LVR’s are only available in high population areas (Capital Cities or Major Regional Cities and Towns).  You can have lower loan values in regional areas and for vacant land.

Every lender has different policies, however there are some standard criteria.

• Length of ABN / GST registration: You need to have an ABN that has been registered.  GST registered is required if sales are over $75,000. Most Lenders require ABN to be registered for at least 12 months. We have lenders who may accept an ABN registered only 3 months old.
• Reasonable income declared for the business: Lenders assess if income and current assets are in line with Business and age. For example an 18 year old courier with no assets would be declined if they declared an income of $200,000.
• Clean credit: Best rates require clean credit applicants. We can lend to 85% with credit impairments allowed.
• Security: All Funders will take a risk on the applicant but not on the property. Properties that are in low population areas or unique, requiring major repairs or difficult to sell are usually not accepted.
• Cash out: Our Specialist Lenders will allow cash out up to 90% LVR.
• Debt Consolidation: Our Specialist Lenders will allow Debt Consolidation to 90% LVR.

For The Best Rates for Low Doc Home Loans:

Rates on Low Doc Home Loans are determined by these main factors.

• Lower the LVR: Higher deposits have less risk so rates are lower.
• Location: Capital Cities generally have lower rates applied.
• Clean Credit: Low Doc Home Loan Applicants with bad credit have a risk interest rate added.

Talk to an Expert:

Our mortgage brokers specialise in Low Doc Home Loans also known as Alt Doc Home Loans with many low doc lenders on our books. Please complete our Assessment Form or Phone Direct and you can discuss your situation with an expert.  It is important to deal with a broker that has several options and is experienced in dealing with Self Employed Lending.