Low Doc Loans

One of the major changes in the finance industry within the last few years has been the introduction of low documentation ( Low Doc ) loans.

The types of loans provided within the Low Doc range are term loans, generally written over a maximum term of 1-3 years. Repayments on these loans are normally interest only and require repayment or renegotiation at the end of the agreed term.

The loans are available to self employed applicants and companies that hold an ABN, who would not otherwise be able to provide up to date financial data to support a normal loan application. Some lenders may also accept an applicant's self certification of income, a copy of a lease, where the security provided for the loan is an investment property and/or a letter from an accountant, confirming your income.

As the usual requirement for tax returns is not needed to confirm income, financiers will generally lend a lower percentage, up to a maximum 65% of the valuation of a non specialized commercial property. The actual percentage of funds lent can also be subject to locational restrictions.

As the lenders are exposed to a higher risk with low doc / self certified loans, the interest rates are generally higher than the standard business rates.

At present we also have access to a lender who can provide a low doc term loan up to a maximum term of 15 years, however conditions apply.