Are there any good sources of info on LODOC or NODOC loans(E.g.Books, internet sites, articles, etc).
Christopher.
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 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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
Parramatta
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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
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.
Plus they only take a first mortgage over the proposed property.
Regards
Joshua McEwen
Finance Broker – WAhttp://www.prestigeloans.com.au
Brokers Lic 1297
Licensee Brett ChristieI 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
[email protected]95% lo docs have been around for a while Josh.
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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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
[email protected]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 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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.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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