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Asset lending home loans are a very niche product in the home loan market and differ from both low doc home loans and no doc home loans. An asset lending home loan is named as such because it the asset in the form of property which is leant against and funds drawn from for the sole purpose of investment.
An asset lending home loan does not require you to sign a declaration of income but a declaration of affordability, and there are some other key points of difference between low doc home loans and an asset lend home loan.
For your reference we have highlighted some key points below in the form of a question and answer scenario specifically for asset lending home loans:
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What is the main difference between a low doc home loan and an asset lending home loan? |
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The key difference is that an asset lending home loan requires a declaration of affordability as compared a declaration of income |
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Do I still have to provide an asset and liability statement and some sort of financial information? |
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No, the majority of asset lending home loan providers do not require an asset and liability statement nor do they require financial statements to support income evidence |
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If I want to use my asset and still owe money on it can I still obtain an asset lending home loan? |
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Yes you can, the asset lending can absorb the existing home loan facility with the balance being used for investment purposes |
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I don't necessarily want to buy an investment property with the funds; can I invest in other areas? |
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Yes you can, for example you can purchase shares or invest in a business by using an asset lending home loan |
As you can see the asset lending home loan has a number of purposes but is specifically for the purpose of investment. There may be more questions you have on this unique product so please contact us to find out more or you can arrange an appointment with a home loan consultant.
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