Low Documentation or Low Doc Home Loans are home loans that require less than the usual amount of documentation required to prove ones income. They are typically designed for the self-employed or casual workers and provide a source of finance that would otherwise be unavailable.
Low Doc Home Loan Advantages
- Lower requirements for proof of income.
- May overlook non-existent or poor credit ratings.
Low Doc Home Loan Disadvantages
- Given the added risks to the lender, low doc loans typically come with higher rates of interest when compared to the more standardised home loan products.
- Larger deposits of greater than 20% may be required by the lender.
Most Suitable For
- Casual workers.
- Those with variable incomes.
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