Low Doc Mortgages – How to Compare Low Doc Mortgages
How to Compare Low Doc Mortgages
If you are self-employed and do not have any proof of income, low doc mortgages are the way to go. This type of loan requires less documentation and may be easier to qualify for than a conventional home loan. Typically, you will need to provide the last two tax returns and a letter from your accountant verifying your income. You will also have to pay a lower interest rate, which is a significant benefit.
A low doc home loan will generally require that you produce some proof of your income, such as bank statements or tax returns. However, you can still qualify for a no doc home loan if you have a business or are self-employed. If you have a self-employed income, you may want to work out the cost of the loan with a loan calculator. If you’re self-employed, make sure to compare low doc mortgages with high interest rates.
Another major benefit of no doc mortgages is their flexibility. Many lenders allow you to switch between fixed and variable interest rates as you please, which can increase your savings significantly. Another advantage is that you can take your existing loan with you when you move, which is very convenient if you’re planning on selling your old house. A low doc mortgage can also help you release the equity in your existing home before selling it. And finally, when comparing Low Doc Mortgages, remember to compare them with traditional home loans to find the best deal.
Low Doc Mortgages – How to Compare Low Doc Mortgages
When comparing low doc home loans, remember that they may be a little higher than their standard counterparts. Some lenders allow you to borrow up to 80 percent of the value of your property, which is considerably lower than most traditional mortgages. As with any type of mortgage, a low doc mortgage isn’t right for every buyer, but if your credit is strong and you have enough savings, it may be a good option for you.
While choosing a low doc mortgage should be based on your needs, it is important to compare the features of different products. A low doc mortgage may require more paperwork than a conventional mortgage, but the extra fees are worth it. You’ll need to compare the rates and features of several low doc mortgages before committing to a loan. The extra fees could be well worth it in the long run. You’ll be glad you took the time to compare low doc mortgages.
Another factor to consider is the income you generate from your business. Low doc home loans usually require a higher deposit. Most lenders require a 20% deposit. In addition, you’ll need to provide income verification from an accountant or bank statement. Some lenders require a GST registered ABN, while others are more lenient on this. A good asset to income ratio is two to one. This is the most common low doc mortgage.