What Should You Know About No Documentation Loan?

Purchasing a home loan can be a daunting task if you are a freelancer, a contractor, a small firm owner, a small investor or a self-employer. It is because lenders often hesitate to grant home loans to those who have undocumented income. In simple words, self-employers are often at a loss when getting a home loan in Australia since they’re unable to provide proof of regular income. However, they don’t have to worry, as many Australian lenders provide no documentation loan these days.   

A no doc home loans are one such mortgage in which borrower don’t require to provide any income payslips or evidence, tax returns, business activity statements, proof of GST returns for a mortgage application, which makes the process easy and fast. So, here are the facts you must know about no documentation home loans. These are:  

Qualification Criteria   

In a traditional mortgage, a lender or even non-conforming lenders often ask borrowers to provide several documents that are mentioned above. Still, you don’t provide all for no documentation loans, and even credit scores are often overlooked in a no doc mortgage application.   

So, the question is, how can you qualify for this loan? Most Aussie lenders ask for a declaration form that ensures that you can repay a home loan in the given time stated in the application form. You may have a deposit amount of 40% of the purchase price or even more. The loan you borrow under no documentation criteria shouldn’t exceed the borrowing limit of $1,000,000.  

Interest Rates  

The reality of taking out a no-doc mortgage is that you need to pay a higher interest rate than a traditional loan and even more than a low doc mortgage. The greater the percentage of your property value, the more you have to pay interest for it.   

However, when assessing a no-doc loan, the interest rate is not only the considerable factor you should look upon; there are many. Consult Mr Rohit Khatak he is the best Mortgage Broker Balmain. He can help you provide a full picture of the loan, help you understand how it will suit your needs, loan features and application fees.  

Benefits  

• You can pay additional money to accelerate the home buying process with no document mortgage.  
• There are several loan options, including fixed and variable home loans.  
• Unlike a traditional loan, no document loan eliminates lenders requirement of different forms and finance evidence.  

 Your Finance Adviser — Your trusted Partner  

We are ready to help you meet your financial goals by comparing interest rates of popular lenders in Australia. Our team of mortgage broker are consistently helping Aussies to get the best loan by evaluating their financial situation. Contact our team today to explore more home loan options in Australia.