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The low doc 85% home loan is quite unique as it extends beyond the traditional low doc home loan threshold of 80%. As it is such a unique low doc home loan we have detailed for you the product profile for your reference and touched on some of the key points about the 85% home loan product.
We invite you to browse through this information and if you have any more questions simply contact us and we will be more than happy to assist.
Minimum and Maximum Loan Amounts
The maximum home loan amount for the 85% low doc is up to 3 million dollars but generally sits around the 1 million dollar mark.
As the home loan amount increases the LVR available to you may be reduced depending on a number of factors such as location and type of security.
There is a specific low doc home loan that is on offer which can allow up to 9 million in borrowings and again the LVR will be determined by the low doc home loan provider. When it comes to the minimum home loan amount this sits at 30 thousand dollars.
Location Guide
The majority of low doc home loan providers use an external mortgage insurance company to insure their home loans, the 85% low doc provider is a self insured financial institution so there can be a higher level of flexibility when it comes to the acceptable location of a property.
Even though this low doc provider is self insured they are postcode driven and they categorise their postcodes based on density of population and housing in any given postcode.
The location of the property you choose to purchase using the 85% low doc home loan may have an effect on the end LVR which is provided. For example if you were to purchase in a location classified as rural then the end LVR may be reduced to 80% rather than 85%.
Investment Guide
For investors who are self employed the 85% low doc home loan is an ideal vehicle to purchase investment properties. This is simply due to the extended lending ratio which is available through this low doc provider.
What this low doc home loan allows the investor to do is free up funds which would otherwise have been used to cover a deposit on an 80% low doc, this frees up 5% of funds to cover costs or use in other projects.
Bare in mind that the this low doc home loan allows the rental income to be factored into the servicing of the home loan.
Converting from a Low Doc to a Full Doc Home Loan
The option to convert from a low doc home loan to a full doc home loan is certainly there and is often done once the applicant is able to supply a fully verified set of financials.
This is generally done to achieve a more competitive interest rate and or move to a home loan product structure which is more suited to the applicants needs at that point in their life.
When it comes to converting from a low doc home loan to a full doc home loan it is a matter of supplying the fully verified income details to the home loan provider and choosing the appropriate product.
Alternatively you can choose to source another home loan provider based on your needs at the time and your future direction with regard your finances.
The 85% low doc home loan is a unique product and is suited to a wide range of needs.
If you have any more questions please contact us and have a chat to one of our low doc home loan consultants or arrange an appointment and have a one on one meeting.
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