Not all people seeking a home loan will fall into the typical category or mould that applies to the standard home loan.
You may be self-employed and have a more complex financial situation, with business and personal finances linked together.
As a self-employed client, there are broadly speaking two options available to you – full documentation or low documentation loans, also known as full or lo doc loans.
Full doc loans are for clients who are able to provide full financial statements and income tax returns for the previous two years as proof of their ability to service a loan. However, not all self employed people are up to date with their accounts and getting their tax done. This is where lo doc loans or lite doc are a great help. Lo doc home loans are specifically designed for self-employed people who do not have their financials prepared in time for a loan application. To qualify for a lo doc loan or a lite doc loan, lenders now require 4 quarters of lodged Business Activitiy Statements and/or trading account statements. Verifications will vary from lender to lender.
There are 2 essential difference in these type of lending. One is a policy and the other is a product. When it is a policy the normal interest will apply, but if it is a product then a loading on the interest will apply.
Whilst self-certified products are still available, they are generally more expensive as you will have to pay for a risk premium.
Whatever your situation, Mortgage Zone has a range of products from different lenders that recognise that not all home loan applicants are the same. Contact us to talk to us about your unique lending requirements.