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We have provided a brief list of commonly asked questions about the 85% low doc home loan for your information and reference.
There are some key points touched on below but bear in mind there is much more about the 85% low doc home loan than what you see here. So we invite you to browse through this information and if there any other questions you come up with please just contact us and we will help in any way we can.
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Do I have to pay mortgage insurance on the 85% low doc home loan? |
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Yes there is a component or mortgage insurance (risk fee) as this low doc home loan is a self insured product. |
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Can I capitalise the mortgage insurance on top of the loan above 85%? |
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You are unable to add this fee beyond the 85% LVR although there is the option to incorporate this fee up to the 85% threshold. |
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Because I am borrowing 85% which is more than the standard 80% low doc home loan, do I pay a higher interest rate? |
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Yes the interest rate is higher and this is relative to the risk level based on a higher lending ratio as compared to traditional 80% low doc home loans. |
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Is there a need to provide financial statements on the 85% low doc home loan? |
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Not if the purpose is to purchase a property, the only time you would need to provide financial statements is if a refinance is involved i.e. home loan statements, or if it is a debt consolidation. |
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Can I make additional repayments on the 85% low doc home loan? |
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Yes you are able to make additional home loan repayments |
In essence the 85% low doc home loans key point of difference is that of offering a higher lending ratio as compared to other traditional low doc home loans which may assist you in a number fo areas.
There is much more to know about this low doc home loan so we invite you to ask questions by simply contacting us and one of our home loan consultants can assist. Alternatively you can also arrange an appointment and have a low doc home loan consultant come out to see you at a time that suits.
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