A Low Documentation (Low Doc) home loan is best suited for those who can’t provide the traditional financial documentation of proof of income required for typical home loans. Generally used by investors or self-employed borrowers looking to purchase, renovate or refinance. Due to the higher risk perceived by lenders, the interest rate is usually higher or the deposit may be larger. There are also more limitations placed on the maximum Loan to Valuation Ratio (LVR).

Loans for self employed people/sole traders

If you’re self employed or a sole trader, it is important to have all your financial records up to date. This makes applying for a home loan not much different from any other home loan application. Lenders will typically want to see your personal and business tax returns and income tax assessments from the last one to two years. This is because your declared taxable income, not gross overturn, will likely be used to determine how much you can borrow.

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