What are Low Doc Loans ?
What are Low doc loans? Most people don’t know about this type of loan, but if you ask a self-employed, it’s very common to them.
If you don’t know, worry not, today I will explain to you what low doc loans are, who are these loans for, can you get it, if ‘YES” then how to get one.
First thing you must know, to get a low doc you need to have an ABN.
OK now what is an ABN? An ABN is a unique 11 digit number that identifies your business. You’ll need it for tax and other business activities. According to business.gov.au, not everyone needs an ABN. To get one you need to be running a business or other enterprise.
If you are a self employed sole trader, small business, company, partnership or trust with a registered ABN, then you are eligible for a low doc loan in Australia.
Things to know about low doc loans
- Low Doc Loans does not means you will get a loan without any document. You will need to provide self declaration and accountants letter or bank account or BAS or combination of two or more.
- Good Credit is history is a must if you want to get a low doc loan. You can still get a low doc with low credit score, defaults, missed payment, but I can tricky to get a loan. Also if qualify for a low doc loan with bad credit, the interest rates will be significantly higher.
- If getting a low doc car loan, home loan or commercial property loan, you might have to put some extra deposit as compared to a standard loan.
- You can change from low doc loan to full doc loan, once you have the full financials.
- Under the ABN, lesser the risk for banks. Generally if you ABN (GST registered) is older than 3 years or more, banks are more confident in you a loan. Older ABN means better interest rate.
Are low doc loans still available in Australia?
The simple answer is “YES”, Low doc loans are still available in Australia. They are different from no doc loans which are not available no more. Getting a low doc loan with out providing any documents in not possible today, you will have to either provide an Accountants Letter, Business Activity Statement (BAS), Bank Account Statement or combination of three.
How to get a low doc loan in Australia?
Whether you after a low doc car loan, home loan, business loan, commercial property, asset finance or equipment finance, Contact Low Doc Loans Australia broker now for a free consultation.