Low doc loans

Low-doc loans are essentially designed primarily for self-employed buyers, with less documentation required for approval and,consequently, higher interest rates and fees than other mortgages.

The reason? Lenders see you as a greater risk because your lack of paperwork is unable to completely reassure them that you will be able to make repayments.
Hence, they increase the rates to act as insurance in case you are unable to make your repayments.
Putting together all your financial paperwork can be a cumbersome task.

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Make your credit history attractive

The Australian Securities and Investments Commission recommends ensuring your finances all up to date and in order, like your income tax returns and any financial statements.

A fluctuating income is likely to disconcert most lenders. Despite this, if you can show at least two years of records of healthy annual revenues includes business activity statements (BAS), bank statements, interim financial statements, or traditional bank statements)  you may be equipped to secure a home loan with competitive rates. It may take some time, but the potential savings will make it worthwhile in the end!

If you happen to have poor credit history, this isnt always game over. Lenders may place more value on your future potential during the approval process.

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