Low Doc Loans are useful for borrowers who are unable to substantiate their level of income using conventional documentation required by most lenders or for borrowers who may have complicated financial structures. They are typically designed for people with special needs, and allow borrowers to forego the time and effort of culling tax records, bank statements, brokerage reports and other documents in order to obtain finance.

There are many variations on these types of loans, and it is a good idea for potential borrowers to find a program that meets specific asset or income requirements. Some low-doc mortgages allow customers to simply “state” their income by filling in a blank on the application. Others go so far as to not require any information about income, assets or even existing debt.

Each step down the ladder requires the borrower to put either more money of their own into the transaction or accept a higher interest rate. Many Low Doc products these days give borrowers the option to switch back to a conventional variable rate product after a set period of time without the need to show full financial statements, provided that they have maintained a good credit history during the Low Doc period.

If you need more information on these types of home loan products and how they suit your individual home loan needs, our mortgage consultants can help.