Low Doc Loans

Lo Doc home loans are commonly utilised by clients who have difficulty verifying their income. This situation can occur when a new business is launched and the owners don’t have any fully completed financials yet, or when the structure of a business is altered, for example from a sole-trader to a company/trust. While this option is normally limited to investment purposes, Dynamic Loans can provide clients with an owner occupied option for this product through its panel of non-bank lenders.

This product is perfect for clients who have recently started their own business, and/or are not able to provide the required financials to obtain finance through the big 4 banks, as they have not been trading for long enough. In most cases, a LoDoc home loan operates exactly the same as a standard home loan, with most of the product features such as redraw, line of credit, variable and fixed rates, and P&I and Interest Only options being available to utilise. The term LoDoc purely refers to the fact that the applicant’s income is being verified by a ‘low amount of documentation’.

The only main difference to consider when applying for a LoDoc loan is that lenders almost always impose a higher interest rate than a standard home loan. This is implemented to mitigate the risk on the lenders behalf, as they are lending funds with a limited amount of income validation.

Inquire today with one of our experienced brokers to evaluate your options.