Lo-doc loans have had a bad name since the GFC when thousands of Americans were sold loans they had no way of repaying. But, there are times when lo-doc loans are the solution to those who cannot get finance.
Typically, in Australia, a lo-doc loan is a solution to would-be borrowers who will not or cannot substantiate their income. Often this is because they do not have the two years’ worth of financial statements that lenders require.
Normally the preserve of the self-employed, here are some examples of when I have used lo-doc loans. Could they apply to you?
• A plumber who has been slack in completing his tax returns
• A bike shop owner whose business is going from strength-to-strength but who does not yet have two years’ financials
• A business woman whose business had a poor 2015, but which is having a stellar 2016
• A family business which has just restructured its ownership
• An accountant who wanted to purchase a new car rapidly
Many lo-doc loans also have quite competitive rates – especially if you are borrowing less than 80 per cent of the property’s value.
If you want to buy a property but have always thought it was too hard, please get in touch – it may be easier than you think.