Home Loan Advice Centre guides you through the entire home buying journey, without charging you for our service. Click here for our 5 minute online enquiry page . We’ll assess your loan options and send you a full report of your capacity.
The amount you can borrow is affected by your income, your deposit, and bank’s serviceabilty criteria which is linked to interest rates, cost of living, and your existing liabilities etc. See our Borrowing Power calculator for a rough estimate.
Home Loan Advice Centre helps borrowers Australia-wide. We specialise in Sydney and NSW and regularly help clients in remote areas and other states. Feel free to contact us on 02-9210-1000 or 1300-729-177 to see how we can help you.
Self employed loans
Full Doc Loans
Loans for applicants who are self-employed are sometimes more difficult to arrange because lenders differ in how they calculate income level and income reliability for self-employed applicants. Some lenders require a two year history of tax returns, others may require only one. Lenders may calculate income as the average of the taxable income showing within the past two tax returns, others may be willing to calculate it based only on the most recent year’s result. Lenders may also allow certain expenses to be added-back to income. The differing policies between lenders can make for large variations in the amount different lenders may be willing to lend to you. Our knowledge and experience on lender servicing rules allows us to fit you with the best lender with policies that most fit your needs.
Lo Doc Loans
Lo Doc loans are loans where lenders give self-employed applicants more flexibility in how they prove their income. Borrowers may be able to substitute BAS statements, business bank account statements, or accountant’s letters, in place of the need to provide fully completed and submitted tax returns and financial statements.
Lo Doc loan are designed mainly for people who have substantial equity or deposit (~ 20%+ of the value of the property they wish to purchase) but who may have trouble showing evidence of their income levels. This can be the best option for applicants who are self-employed or have irregular incomes.
In the past,Lo Doc loans had significantly higher interest rates than standard loans and therefore were generally only used as a lender of last resort. In recent years, the rates have moved down to the point where many lenders now offer these loans at standard interest rates.
Most Lo Doc lenders will allow a loan of up to 80% of the value of the property you provide as security. Some lenders may even allow loans above this however interest rates are often higher.
Mortgage insurance may be payable on Lo Docs above 60% dependent on the lender.
There are many different tiers and types of Lo Doc lenders in the market and which one is most suitable depends on your circumstances. Please call Home Loan Advice Centre on 02-9210-1000 to get more information.