WHAT IS A LO-DOC LOAN?
The ‘doc’ in lo-doc loan, stands for ‘documentation’. A lo-doc loan does not require the same amount of paperwork that is traditionally needed to take out a home loan.
In place of an up-to-date tax return or pay slip, lo-doc applicants can get letters from their accountant, or make what is called a ‘statement of earnings’ – among other things. Because of their relatively ‘high-risk’ status, lo-doc loans can have tougher serviceability requirements and higher interest rates.
WHY DO I WANT LO-DOC LOAN?
A lo-doc loan is for when you don’t quite have all of your paperwork together.
WHO WOULD BENEFIT FROM A LO-DOC LOAN?
A lo-doc loan is best suited to self-employed, small businesses and sole traders who don’t have the traditional paperwork required to take out a loan.