Lo Doc loans were introduced by the Banks to cater for the needs of self-employed borrowers.
Lo Doc means “low documentation” and this type of loan provides a much simpler application process where minimal documentation is required to support the application i.e. no tax returns or full financial reports.
This can be of great benefit where current financials have not yet been prepared. A Lo-Doc loan is ideally suited to self-employed borrowers or investors looking to refinance, purchase or renovate.
Some lenders also accept PAYG income earners. Lo-doc loans are available for investment and owner occupied home loans and some lenders charge a slightly higher interest rate for this product.
