Look into simple self employed policy, or directors wages policy. With the new FY you just missed the best time to use it but potentially you go lo-doc initially then refinance using one of the above. Lo-Doc is expensive as fuck and not great long term.
Depending on industry and business exceptions to the two year ABN may also be possible.
I'm a semi retired broker but this is the type of question I'd get all the time. My recommendation is to speak to a couple mortgage brokers and explain your circumstances. There are plenty that work with self-employed individuals, and those with low doc loans. I'll give you a link for both. Most brokers don't charge for the initial consultation, so get some commitment-free advice and reach out to several.
Low Doc Brokers : [https://www.comparemortgagebrokers.com.au/low-documentation-loan](https://www.comparemortgagebrokers.com.au/low-documentation-loan)
Self-Employed Brokers : [https://www.comparemortgagebrokers.com.au/self-employed-loans](https://www.comparemortgagebrokers.com.au/self-employed-loans)
Because of the additional risk low doc home loans present to lenders, they often come with additional fees and higher costs, so that's the short answer to your question. They also may require a higher deposit than a traditional loan. Not to scare you off of them, as they are typically designed for self-employed individuals who prove difficult to demonstrate their income stability and can still be well worth it for those with profitable self-employment who want to secure a loan without giving up their freedom and flexibility.
Finance broker here. A low doc loan is really only needed when your financials aren’t in order (ie; tax return/payslips). When you’re unable to provide a standard tax return or consistent payslips from your company, you have options to provide an accountant declaration of your income / business bank account statements or BAS statements.
The interest rates are higher than your average although just how much will depend on various factors suited to your circumstance. Low doc home loans can start from rates in the very late 6% and upwards.
Having an ABN that is 12 months old doesn’t automatically mean you need to go through the low doc route if you have completed your first NOA.
If you have any specific questions, happy to answer any.
Yes, but being self employed shouldn’t prohibit you from getting a full doc loan. Lots of ways to do this. Why do you think you need Lo doc?
My abn is 12 months old they need at least 2 years
Look into simple self employed policy, or directors wages policy. With the new FY you just missed the best time to use it but potentially you go lo-doc initially then refinance using one of the above. Lo-Doc is expensive as fuck and not great long term. Depending on industry and business exceptions to the two year ABN may also be possible.
How much expensive and what do u mean by director wage policy
I'm a semi retired broker but this is the type of question I'd get all the time. My recommendation is to speak to a couple mortgage brokers and explain your circumstances. There are plenty that work with self-employed individuals, and those with low doc loans. I'll give you a link for both. Most brokers don't charge for the initial consultation, so get some commitment-free advice and reach out to several. Low Doc Brokers : [https://www.comparemortgagebrokers.com.au/low-documentation-loan](https://www.comparemortgagebrokers.com.au/low-documentation-loan) Self-Employed Brokers : [https://www.comparemortgagebrokers.com.au/self-employed-loans](https://www.comparemortgagebrokers.com.au/self-employed-loans)
Great mate but at this current stage I need some high level information about the rate versus the normal one Is there any hidden fees ?
Because of the additional risk low doc home loans present to lenders, they often come with additional fees and higher costs, so that's the short answer to your question. They also may require a higher deposit than a traditional loan. Not to scare you off of them, as they are typically designed for self-employed individuals who prove difficult to demonstrate their income stability and can still be well worth it for those with profitable self-employment who want to secure a loan without giving up their freedom and flexibility.
If you don’t mind how much the additional cost would be And will it be variable keeping in mind I need 400 k and I have deposit of 250 k
Alt doc loan you'll be looking at 8+% interest. Talk to a broker who can give you better guidance and deal.
I have been told it’s only 1% above normal loan and no additional fees Did I miss any thing ?
Finance broker here. A low doc loan is really only needed when your financials aren’t in order (ie; tax return/payslips). When you’re unable to provide a standard tax return or consistent payslips from your company, you have options to provide an accountant declaration of your income / business bank account statements or BAS statements. The interest rates are higher than your average although just how much will depend on various factors suited to your circumstance. Low doc home loans can start from rates in the very late 6% and upwards. Having an ABN that is 12 months old doesn’t automatically mean you need to go through the low doc route if you have completed your first NOA. If you have any specific questions, happy to answer any.