LoDoc Home Loans

The LoDoc Home Mortgage is a lifesaver for self-employed people who want a home loan but don’t have up-to-date financials that they can submit as part of their home loan application. Usually when applying for a home loan, financial institutions want to see proof of income. For self-employed people, that often means submitting many years of tax returns as well as their profit and loss statements. The reality is, many small business owners simply don’t have all the requirements to qualify for the proof of income requirements for a standard home loan.

Thanks to LoDoc home loans many self-employed people don’t need to jump through hoops to get a home loan. Many financial institutions offer a LoDoc mortgage for people who don’t have all their paperwork in order, and will lend up to xx% of the home amount using this type of home loan without any paperwork requirements.

Different lenders have different requirements. Some will simply ask you to complete an Income Declaration statement. Others will also ask you to supply copies of BAS statements over a period of time. And some will want to speak with your accountant.

LoDoc loans are also known as non-conforming home loans simply because they are targeted towards people who don’t conform with the lender’s traditional lending criteria.

As a result of the current economic climate, some lenders have become much stricter with their lending criteria on non-conforming loans, in particular when it comes to LoDoc lending. With that, lending criteria for LoDoc Home Mortgages varies wildly between institutions so it’s vital to spend time comparing home loan products.

LoDoc Loans – The Pros

1. Self-employed people are no longer treated as second class citizens in the eyes of the Bank. They can now borrow to purchase property.
2. Continue to run your business and distribute income through your business in the way that suits you best financially instead of paying yourself a regular income in the way that suits the Bank’s lending criteria.
3. You don’t need to have been in business for a long time.

LoDoc Loans – The Cons

1. To minimise their risks, most lenders will want you to take out mortgage insurance though which can equate to as much as $xxxxx.
2. Other lenders will only allow people to borrow up to xxx% of the value of the home without supplying xxx years of tax returns or similar financial records.
3. Interest rates on LoDoc loans are usually xx – xx% higher than traditional home loan rates so borrowers are paying extra for the privilege of securing a home loan without supplying all their financials.

Contact Us 

If you would like to discuss your specific circumstances call us on 1300 700 496 or alternatively text your name and number to 0411 320 962 and we will call you.