If you’re self-employed, you may have found it difficult to get a traditional mortgage. Don’t despair. The lo doc home loan has been designed specifically for you.
The dilemma of the self-employed
If you’re self-employed, the goal of your accountant is to minimise your taxable income. Unfortunately, while this means you pay less tax, it creates problems when you try to borrow. While you might know that you can service a loan, your books don’t back you up, or your paperwork may not be up-to-date. As a consequence, the business owner often find it frustrating to obtain a Home Loan.
Consider the lo doc home loan (or low doc home loan)
While the self-employed often can’t satisfy traditional lending criteria, they can be perfectly capable of servicing a loan. As a consequence, the low doc or lo doc loan was born. Lo doc loans don’t require the same level of “documentation” as normal loans. If you have difficulty documenting your financial position with regular pay-slips, tax returns or business financials etc, a lo doc mortgage could be a good solution.
Only borrow through an accredited MFAA member
Lo doc loans are available through finance brokers, banks and non-bank lenders. Even with a lo doc loan, only borrow through someone you can trust. And that means a team member of Vision Property & Finance – we are the Essentials of Borrowing.
Find out how a Vision finance broker can help click here.
Article supplied by MFAA