All Topics / Finance / LO DOC/NO DOC

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  • Profile photo of DraconisVDraconisV
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    @draconisv
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    Post Count: 319

    Are there any good sources of info on LODOC or NODOC loans(E.g.Books, internet sites, articles, etc).

    Christopher.

    Profile photo of Mortgage HunterMortgage Hunter
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    @mortgage-hunter
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    There is not that much detail to them – just ask me or any broker. Spend your time researching the important stuff. The type of loan is not a war winner. Focus on what and where rather than how. Let your broker earn his mony doing that for you.

    Simon Macks
    Residential and Commercial Finance Broker
    ***NODOC @ 7.15% to 70% LVR***
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of TerrywTerryw
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    Its not the sort of thing you can write a book about. What do you want to know – With a No Doc basically you can borrow 70 to 80% of the value of a proeprty without showing an income or assets/liabilities. There is no serviceability test.

    With a Low Doc, then lender requires an income to be listed, as well as your other assets and liabilities. Your declared income must be enough to cover all expenses (in the eyes of the lender), but there is no checking or verification of your income – so most people exagerate it to qualify.

    Terryw
    Discover Home Loans
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    Profile photo of DraconisVDraconisV
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    @draconisv
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    Hmm, so whats the catch. It seems like jsut a better way to go for everyone. Is there a penalty(e.g.Slightly higher interest rate)??

    Christopher

    Profile photo of BootlaceBootlace
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    @bootlace
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    The catch is lo-doc and no-doc loans require a substantially larger deposit.

    Where with traditional full documentation loans you can borrow up to and in excess of 95% LVR, as TerryW says you would generally be looking at an 80% LVR at best for a no-doc loan. It ties up a lot of capital that wouldn’t otherwise be required if full documentation were provided.

    The loans are generally aimed at self employed applicants who either have incomplete financials, or have complete financials but don’t wish to disclose their income.

    Profile photo of Josh-PrestigeloansJosh-Prestigeloans
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    @josh-prestigeloans
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    Post Count: 62

    Plus they only take a first mortgage over the proposed property.

    Regards

    Joshua McEwen
    Finance Broker – WA

    http://www.prestigeloans.com.au

    Brokers Lic 1297
    Licensee Brett Christie

    Profile photo of joshadelsajoshadelsa
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    @joshadelsa
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    I agree with all the guys above however just released recently is a lender that will go 95% LODOC!!! its good however you do get stung on the rate which is 9.24%. It is slightly less if you have 2 borrowers and one is full doc.

    Its a good product however high rate and high LMI.

    something to think about.

    Joshua

    Investor Finance
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    Profile photo of Alistair PerryAlistair Perry
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    95% lo docs have been around for a while Josh.

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
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    With one of the 95% lodoc loans you only need to have had an ABN for 1 day but have been self employed for 2 years.

    The rate is 8.99% variable at the moment.

    Cheers

    Richard Taylor
    Residential & Commercial Finance Broker
    100% Finance on selected properties in the USA.
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    Profile photo of joshadelsajoshadelsa
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    Thats the one Richard. [biggrin]

    yeah your rite APerry they have been round for awhile … just had a new product that I was refering on. thank mate

    Investor Finance
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    Profile photo of Mortgage HunterMortgage Hunter
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    Its a good product however high rate and high LMI.

    something to think about.

    What makes it good? I think that rate, fees and LMI are pretty critical and most other considerations come second place after those?

    Simon Macks
    Residential and Commercial Finance Broker
    ***NODOC @ 7.15% to 70% LVR***
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of DraconisVDraconisV
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    @draconisv
    Join Date: 2006
    Post Count: 319

    NODOC allows me to have low income, but must use high deposit.
    I think the one i would go with would be LODOC. As my income(when i buy property) will not be all that high, but i should have a 10-15% deposit.

    Profile photo of AnitamarshallAnitamarshall
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    @anitamarshall
    Join Date: 2005
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    I dont know of any books on the subject however if you contact an experienced broker they should be able to give you the details you require.

    Things to keep in mind:-

    – No doc doesnt require you to state an income at all – simply that you can afford the loan
    – Low doc requires an income declaration and depending on the lender some also require verification from an accountant.
    – Keep in mind that most lenders charge lenders mortgage insurance for loans above 60% however there are several good ones that dont up to 80%
    – Interest rates are very competitive as long as you dont borrow more than 80% of the property value (or use equity in another property)

    Hope this helps but feel free to ask me any other questions you may have.[biggrin]

    Anita Marshall
    Advanced Finance Solutions
    http://www.advancefinance.com.au
    [email protected]

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