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No doc home loans are again different to low doc home loans with a different set of requirements from the lender and other parameters which surround the product based on its type.
This product is specifically for those who are unable to provide income evidence and are investors, to explain it further we have highlighted below some of the key points which differentiate a no doc home loan from a low doc home loan by way of a question and answer scenario:
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What is the key difference between a no doc home loan and low doc home loan? |
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The key difference is the type of declaration which is signed, a no doc home loan requires a declaration of affordability versus a low doc home loan requiring an income declaration |
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Do I have to show any financial statements with a no doc home loan? |
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You do not have to show any financial statements unless you need to refinance an existing home loan. |
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With a low doc home loan I needed to provide an asset and liability statements, do I need to do this for a no doc home loan? |
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There is no requirement to provide asset and liability information with a no doc home loan. |
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Do I need to have an ABN and be GST registered for 2 years on a no doc home loan? |
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In some cases particular lenders do require an ABN although it does have to be registered for 2 years or more, the same applies to GST registration but again this depends on the lender who provides the no doc home loan facility. |
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Why do I need to be an investor to get a no doc home loan? |
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This is because no doc home loans are non regulated under the UCCC and therefore must be for investment purposes only |
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What percentage can I borrow using a no doc home loan? |
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Generally no doc home loans extend to up to 70% but there are some lenders who can go to 75% or 80% but this is on a case by case basis |
There is a lot more to no doc home loans than one might think so if you have any further questions about this type of home loan please contact us for more information.
Aside from some of the most common questions asked about no doc home loans we have also highlighted some of the most common uses for no docs, below is a brief list of these:
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Can I use a no doc home loan to purchase an investment property using the equity in my home? |
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Yes, you are able to purchase an investment property with a no doc home loan |
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I have equity in my home and want to start a share portfolio, would a no doc home loan be suitable? |
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Yes it is a suitable vehicle to commence your share investment strategy |
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I have a small home loan on my property right now and want to invest, can I use a no doc home loan to pay out the existing home loan and use the balance of funds to invest? |
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Yes, a no doc home loan can be used to pay out an existing home loan with the balance to be used for investment purposes |
There are a number of needs which a no doc home loan can satisfy and if you're in a position where you're unable to show any income or asset and liability information or you haven't been registered in business for over 2 years then this may be the product which suits your needs.
To find out more about the no doc home loan range we have please contact us and speak with one of our consultants or contact us to arrange an appointment. At Low Doc Home Loan Options we have all your options covered
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