For What a Low Doc Property Loan Is Useful?

A low doc property loan can be the answer to all your worries for buying your property when you are declined mortgage by all standard sources. As a self-employed, you may be facing a hard time in finding a good source of funding for your next property purchase. Purchasing a home can be a pain when you have limited or no funding options, especially when you are asked for income proof, which you can barely furnish details to convince the lender.

Low Doc Property Loan

What is a low doc property loan? 

A low doc property loan is an arrangement for people who have problems in furnishing all the documents, which are generally needed to take a loan for buying property. Mortgaging asks for many documents, which sees your income proof, stability, assets, and identity proof, so on and so forth. If you are mortgaging, then you will have to normally show a stable high income, which will tell if you are able to pay back the loan on time or not. Low doc loans are different from other loans. Here the lender will not even ask you for these documents or proof of stable income. You will only have to furnish one or few of the following details

• A declaration telling about your source an amount of income
• Evidence of reduced income
• Business account statements or alternatively a declaration by an accountant stating your financial position

For a low doc loan, you will not have to furnish

• Proof of income other than declaration and BAS
• Income tax returns for the last two years or any
• Any other financial backing showing assets, etc.

Why you would need a low doc loan? 

If you are into a profession, where most of your income comes in the form of cash, and it is kind of a business or freelance service, then you will certainly not be able to convince the lender that you have a stable fixed income. You will not have proof. In addition, you may never have filed ITRs just because you never had a fixed good income, or the income drastically rose and fell with time. There can be other reasons like a stable income, which is not convincing enough for a lender to sanction you a loan. These and many such reasons can make a self-employed person feel helpless when one is trying desperately to get a fund for a property purchase. On such situations, the savior can be a low doc property loan.

If you can simply give a declaration, self-attested that you earn so much, tell about the depreciation, your business, and get things verified by an accountant, then you can get a loan easily. The low doc loans are for such cases only when you have no chances of getting a regular loan. When you have no tax returns, no financial statements of business for previous years, etc. then you can proceed with a low doc loan.

Low Doc Property Loan

The importance of income declaration proof 

The declaration contains important information about you and your business. Your identity, your business, the income generated from it, the amount of loan you wish to take, the repayment plans you have, and the business identification number, are all the details, which you furnish in the declaration. The bank verifies them first and then approves the loan for you. Depending on your profession, income amount, business type, etc. the format of declaration will change. A professional low doc property loan consultant will advise this best. This is one of the best options to make your property purchase dream come true when you have no other option to get a normal loan.