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.
"After being turned down by our bank, our accountant Jonathan referred us to Kris at Dynamic Loans in the hope that he could help us consolidate our existing loans. We found Kris to be personable and friendly and went out of his way to ensure we were looked after from start to finish." - Carmine & Lily
Multiple lenders to select from
Market leading interest rates
Working in conjunction with accountants
Owner occupied and investment
Positive outcomes for all situations