We have provided a brief list of commonly asked questions about 80% low doc home loans for your reference. Some questions you may have already asked and some you may not have thought about so we invite you to browse through and if you need anything else simply contact us to find out more.
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How come on some 80% low doc home loans there is a charge for mortgage insurance when I though that anything at 80% LVR or less didn’t attract that fee? |
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In many cases there is no charge for mortgage insurance at or below 80% LVR, although some of these home loan providers do charge a nominal fee anywhere between 60% LVR up to 80% LVR. |
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Can I capitalise mortgage insurance on top of the home loan amount above 80%? |
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All lenders will not be able to capitalise the mortgage insurance component over the 80% LVR threshold, there is the option with some low doc home loans to include the mortgage insurance up to 80% LVR but not to exceed the 80% lend ratio. |
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Are interest rates higher with a low doc home loan? |
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In general no, the reason for this is that the LVR is 80% or less so the risk factor for the home loan provider is much less than a no deposit home loan for example. Most low doc 80% home loans have interest rates which are in line with their full doc facilities so you are generally not at a disadvantage. |
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Are there fewer features on a low doc home loan as compared to a full doc home loan? |
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The features of a low doc home loan do not vary from a full doc, you are still able to have a line of credit, redraw facilities and so on. Between each lender there are subtle differences so the features you can have attached to your low doc home loan will be based on the lender you choose. |
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Do I have to provide financial statements such as repayment history on other loans or credit card statements? |
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In general no, as this is a low doc home loan there requirement for paperwork is minimised although when it comes to a refinance or a consolidation of debt there is a need to provide repayment history as the lender will need to see good conduct of the loans to be repaid. |
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Can I use a low doc home loan to purchase vacant land even if I may not build for several years? |
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Yes you can purchase vacant land using a low doc home loan, some low doc lenders will still go to the 80% LVR whilst others may have a reduced LVR for vacant land purchases. |
These are only a few of the commonly asked questions so instead of you having to read through hundreds of questions and answers we invite you to contact us and have a chat to a low doc home loan consultant.
Alternatively you can contact us and arrange an appointment with a home loan consultant who can come and see you at a suitable time.
