Advantages of a Low Doc Home Loan Explained 

A few years ago, low doc home loans would never be on the table for most people, but times have changed. People are moving away from the traditional 9-to-5 jobs to ones that suit their needs and requirements. As a result, there are more people than ever across Australia that are self-employed or work as a freelancer. It’s an interesting concept because that shines a light on the struggle for affordable mortgage loans.  

So, why do more people look to low document home loans and what advantages do they offer? 

Self-Employed Individuals Often Struggle to Meet Lender Requirements 

One of the most frustrating things for many self-employed people is that they earn a decent living but are turned down for standard loans. It is partly down to their employment status and the fact they’re self-employed. Of course, it doesn’t mean everyone who’s self-employed isn’t eligible for a traditional loan. Some won’t, regardless. It leaves millions frustrated and out in the cold, essentially. That is where a low doc home loan comes into play. 

Low doc home loans are similar to standard loans but are designed for those who are self-employed and don’t meet the requirements of traditional lenders.  

Great Flexibility 

Despite what you might think, a low doc home loan can be a wonderful option to consider. For example, your current employment status stops you from getting a traditional mortgage. However, you can still buy a property with a low documentation loan. If, however, your circumstances changed in three years, you could refinance the loan and get a traditional mortgage. These loans offer great flexibility and are the best to consider today too.  

Good Credit May Reduce Interest Rates 

Typically, low doc home loans would come with an increased interest rate; however, good credit could avoid such things. It is possible to see a reduction in interest rates just by having a good credit score. This, of course, depends on the lender and how much you wish to borrow. In most cases, lenders look at the whole picture before they decide on your loan application. So, if you are a good risk, in the eyes of the lender, you could see a lower interest rate.  

Access to the Market 

A lot of people (who are self-employed) have few options available to them when they want to buy a home. Sometimes, they aren’t eligible for a standard mortgage, and that leaves them out in the cold. Fortunately, a low doc home loan gives them access to the market. It’s a huge advantage and does ensure great flexibility. This is why more choose low doc loans.  

Choose the Best for Your Home Search 

Loans often confuse most, but low documentation loans are some of the simplest you’ll find. What’s more, they can offer a fantastic range of advantages too, including access to the market, flexibility, and good interest rates. You can even compare loans and lenders to find the one that suits you best. Low doc home loans are viable and can provide you with some excellent benefits.