How Low-Doc Loans Can Secure Your Hopes of Refinancing – Guide

Refinance your home loan with a low doc product, it makes things easy!

Whether you’ve been looking to bring stability back to your finances or make a few long-term investments, refinancing is an effort that requires structure and strategy to make sure not only your loan gets approved, but your new loan is beneficial to your financial circumstances.

It may seem a lot harder than expected to get assistance in achieving your financial goals, as loan requirements become even more complicated each time and the lines get longer. One way you could possibly reorganize your finances for the better is through low-doc loans.

Low doc loans are regarded as the best option for anyone that seeks to attain refinancing without having to go through the trouble of traditional methods that entail extensive paperwork of income verification (typically for self-employed borrowers).

How do low-doc loans exactly work and what makes them great for refinancing?

Low-doc loans are a form of financial assistance that has been developed to enable those with a not-so-stellar tax return or financial statement records to borrow money easily. Generally, low-doc loans work best with self-employed professionals that don’t have their documentation of earnings but manage to rake in a steady flow of income. This is usually the situation for those who don’t have their tax returns up-to-date or they’re merely too complicated due to your tax structure.

Is it easy to apply for a low-doc loan?

As opposed to a prime loan, low-doc loans have a less complicated application process. When applying for a low-doc loan, you need to provide alternative documents that function as proof of your income. Accepted alternative forms of proof for your financial stability include:

  • Business bank statements that detail your earnings in a given period
  • A letter from an accountant certifying your current financial status and income
  • A letter from the borrower certifying your current financial status and income
  • Business activity statements

What do you need when applying for a low-doc loan?

In addition to having a reliable and verified proof of financial stability, a lender may also ask for compliance with several other requirements, such as a minimum credit score. To ensure that your low-doc loan application process for your plans of refinancing are as easy as possible, let’s look at these requirements that you should also secure:

Australian Business Number (ABN)

In compliance with the Australian government regulations, each self-employed professional in the country is required to have an ABN that acts as a form of legitimization. An ABN must be held traditionally for a minimum of 2 years with GST registration in order to show that you have sufficient experience in running a company. This period essentially suggests that you are capable of paying your monthly dues. We do however have lenders who accept a minimum of 6 months trading history however with higher fee’s and interest rates.

Evidence of your intent

A lot of the time borrowers refinance with a low doc lender is to access equity in their property. It’s ideal that you have and provide any evidence of your intent to not only refinance but also where the additional top up funds where will be going. Your new loan must have some type of benefit such as reduced monthly repayments, better interest rate, flexibility or accessing certain products with the new lender. Cash out or equity access requirements differ from lender to lender, some with a maximum amount of $100,000 without evidence, some even have unlimited cash out amounts with some type of evidence where the funds will be going.

If you’re looking for low-doc loans in Australia, get in touch with Highline Lending to see how we can help. We’ll assess your current financial position and lifestyle and match you with the best lender to get your home loan approved from the get-go! Contact us on 02 9121 6247 or submit your scenario online. 

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We meet for a consultation, obtain your supporting documents and proceed to structure and package your application for approval knowing exactly what the banks want to see. We also monitor your home loan post approval ensuring you’re home loan suits you and your financial position

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With our many years experience in the industry, we’ve been exposed to both easy and complex loan scenarios. Each loan we process gets presented to over sixty financial institutions, ensuring we have explored all options possible and are able to provide a solution