Home loans for self-employed Australians

By the resi financial blog team, 02 September 2013

Low doc home loans for self employed

There are many benefits to being self-employed, such as not having to deal with a boss breathing down your neck eight hours a week, and having significantly more freedom to work the hours you wish.

However, one of the downsides to being self-employed is that you are not able to apply for the same type of home loan that a regularly employed person can apply for. This is because self-employed individuals can often find it difficult to present the kind of paperwork and financial evidence that most home loan lending companies require you to submit.

Luckily, there is a special type of home loan designed specifically for people in your position - the Lo Doc Home Loan.

In order to qualify for a Lo Doc Home Loan, you must have been self-employed for at least two years.

With a Lo Doc Home Loan, you are not expected to submit the same amount of paperwork as you are with a regular loan. However, typically the LVR is set at a lower rate, meaning that you will need a larger deposit to get started.

Once you have secured your Lo Doc Home Loan, you will have the freedom to either secure a fixed interest rate, or opt for a variable rate instead. You can even split your loan and fix a portion of it while leaving the remainder on a variable rate.

Lo Doc Loans can also be used for debt consolidation and property investment under certain circumstances, so it's a good idea to read up on this type of loan if you think that it may be relevant to your needs.

Categories: Home Loans, Property Investment