No Doc Loans - Australian No Document Loans

Mortgage Brokers, Reverse Mortgage, Refinance and Home Equity Loans | Links

HOME | LOW DOC HOME LOANS | NO DOC HOME LOANS

No Doc Loans or Asset Lend for Self Employed

No Doc loans are sometimes known as an Asset Lend. No Doc loans or No Document Loans are designed for self employed borrowers or full time investors who don’t have the traditional forms on income verification that lenders usually require.

No Doc loans do not require any form on income verification. The borrower simply signs a declaration saying that the loan won’t put them under hardship and they can meet their financial obligations.

Another aspect that distinguishes No Doc loans from other loans is that the borrower is not obliged to declare their assets and liabilities to the lender. The lender is simply lending against the value of the asset that they have as security.

Interest Rates
When Low Doc and No Doc loans were first invented interest rates were considerably higher than standard bank interest rates. The higher rate reflected higher perceived risk that lenders were taking in funding these loans.

After these loans had been on the market for a few years, it became clear that Low Doc and No Doc loans didn’t present a great risk to lenders. Mortgage Insurance companies then started offering insurance policies against Low Doc and No Doc loans. This lowered the risk to the lenders, which in turn, allowed them to lower the interest rates on No Doc loans.

These days many lenders offer No Doc loans at the same interest rates as their full doc loans, although they will usually lend a lower amount compared to Full Doc loans

Up to 70% of the value
Lenders usually offer no doc loans up to 70% of the value of your property. These loans are generally at similar rates to full doc loans. Most lenders charge a mortgage insurance premium on loans above 60% LVR (loan to valuation ratio)

Declaration
No Doc loans require a No Doc declaration to be signed by the borrower. Unlike a Low Doc loan where the borrower declares their income to the lender, a No Doc loan, No Document Loans, or a Asset Lend, doesn’t require the borrower to declare an income. The borrower simply signs a declaration stating that that the loan they are getting won’t put them under undue hardship.

DISCLAIMER: The information on this website www.mortgagehq.com.au is not intended to replace any legal, financial, vehicle purchasing or selling advice. Our officers and agents believe that all information contained within this website is correct. However, no warranty is made as to the accuracy or reliability of the information contained herein, and no claim shall be made against the owners of this website or the website design company. This internet directory is based on information that we have gathered from personal experience and research, and such information is not to be solely relied upon by third parties to substitute any other professional advice. FULL DISCLAIMER | ABOUT US | info@mortgagehq.com.au.