Investment with Low Doc Loans

A Low Doc is a type of home loan where normal income verification is not required for your loan approval. All you need to do is sign an income declaration, where you self certify your income and confirm that you can afford to repay the loan. The lender will accept the income declaration as proof of your income without needing further supporting documents, such as tax returns or financial statements.

Low Doc (short for Low Documentation) loans are known by many names thanks to each bank making up their own name for their own low doc! It is also known as a Lo Doc, Lite Doc, Easy doc or even Fastdoc!

If you are self employed, and have tried to apply for a full doc loan, you would know why! With a full doc loan the lenders will need loads of documents such as the last 2 years tax returns and notices of assessment for yourself and your business, 2 years financial statements and even BAS statements or interim accounts!

HEADACHE is the word to describe the situation. With low doc loans, all that paperwork is reduced to just one piece of paper! Easy isn't it? Especially since low doc interest rates are now more competitive than ever!

Simplicity is the big plus, however it is not the only reason. For most self employed people, their tax returns often do not reflect their full income. For example, any tax deductable non-cash expenses that appears on financial statements are not truly paid for. A lot of self employed workers often receive cash income, which doesn't show up in their tax returns. Any lenders would decline such applications for obvious reasons. It makes more sense to get a special self employed loan like a low doc rather than to fight an uphill battle trying to prove your income!

Coincidently, a lot of the self employed are also interested in property investment. Why? For the potential tax benefits! If you are satisfied with the fact that your business is growing, then stop for a second, think about your increasing tax liabilities! It is now the time to talk to your accountant or financial planner to see if negative gearing benefits would help.

Have you been thinking about property investment for a while, but had been put off by all the required paperwork and potentially higher interest rate that would apply? NOW is the time to act! There is a saying from a successful property investor, the best time to invest is always yesterday! And because getting a low doc investment loan now is easier and cheaper than ever. Unlike the past, due to competition in the low doc lending market, lending policy has become more flexible, fees are lower and with interest rates that match those of a full doc loan.

Investment is a huge decision, and especially for those who are investing for the first time.

Your accountants and financial planner will be able to assist you with explaining the potential benefits of negatively geared investment properties.

If you would like advice on obtaining finance for your property investments. You can contact the Home loan experts. Home loan experts are mortgage brokers that specialise in low doc loans for Australians and those looking to buy in Australia from overseas.