Lo Doc Loan
Lo doc loans are an alternative loan option if borrowers are ineligible for a general loan. This could be because a borrower can't demonstrate several years of consistent financial history. Perhaps the borrower has just started a new business or ended a relationship. Most lenders charge higher fees and interest rates for lo doc loans. Lenders will usually allow lo doc borrowers to move to a general loan after a few years of stable cash flow.
Minimum documentation normally required for a lo doc loan is:
- proof of identification (driver's license or passport)
- signed declaration of self certifying income
- confirmation the company is GST registered, if your mortgage is in the name of a company.
More Glossary Terms
- Assets
- Auction
- Body Corporate
- Borrowing Costs
- Break Costs
- Bridging Arrangements
- Capital Gain
- Capital Value (CV)
- Capitalise
- Capped Loans
- Certificate of Title (of CT Reference)
- Chattels
- Commission
- Company Title
- Conditional Agreement
- Credit Contracts and Consumer Finance Act
- Credit Report (or Credit File)
- Creditor
- Cross Lease
- Current Market Value
- Debtor
- Declaration
- Default
- Default Margin
- Deposit
- Depreciation
- Discharge of Mortgage
- Dividends
- Drawings
- Equity
- Equity Release Mortgage(or Reverse Asset Mortgage)
- First Mortgage
- Fixed Interest Rate
- Fixed Term (or Fixed Rate Period)
- Floating Interest Rate
- Freehold
- GV or Government Valuation
- General Loan
