Not everyone meets the lenders’ ‘standard’ criteria, but that doesn’t mean they’re unable to get a home loan.
If you’re a self-employed or a contract worker, chances are you won’t have the same financial structure or income patterns as a PAYG income earner, which means you need a product with a little extra flexibility when it comes to qualifying for a home loan.
A low-doc home loan offers non-traditional income earners a home loan solution even if they have an irregular income flow or unusual income documentation.
As with any home loan, there are both pros and cons and you need to take these into account carefully.
Interest rates and fees associated with low-doc loans can be higher, which means your repayments will also be higher. And you’ll need to be sure your income, particularly if it is irregular, will support your required repayments.
If the nature of your employment involves significant fluctuations in your income, there is also a risk of over-committing yourself should your income drop for a prolonged period and you don’t have adequate financial back-up in place.
If you’re a self-employed borrower or contract worker, professional advice and guidance will make applying for a loan a lot less stressful.
A Choice Home Loans broker can offer you guidance and advice on taking out a loan and can walk you through the associated steps of the process.
With the appropriate measures in place, they can secure you a low-doc home loan and make your home buying aspirations a reality.
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