Low Doc Property Finance – a Perfect Solution for Self-employed


If you are a self-employed professional or working on a contract, then you can avail certain amount of freedom. You can schedule your work according to your convenience, and you can work independently. But, when it comes to your property dealing, you will face a big issue because you do not have income proof for the loans. So, you are not eligible for the home loan or any kind of property finance. 

But now you have an option called low doc property finance. You can apply for such loans to buy a property, and you do not need to submit your income proof. Normally, banks can sanction your property loan when you tick all the boxes, like minimum liabilities, maximum assets, and proof of long-term stable income. In the case of a low doc property loan, you can simply fill up the application form with minimum documentation and avail the loan at the lowest interest rate. For self-employed people, this is the only solution to buy a new property, however buying a new property may come with lots of maintenance depending on how big it is. If you need help maintaining it nice and neat then consider hiring a property management company for assistance. 

What is a Low Doc Property Loan? 

Low doc property loans are specially designed for self-employed and small businesses. If you are not able to furnish enough documents, then availing loans via conventional loan methods can be difficult. However, with a doc property loan, the task becomes easier. 

Earlier, self-employed people did not get the property loan because they did not have payslips; banks do not believe in their fluctuation business activity statement (BAS). Even some private lenders were there who sanctioned the loan on the basis on personal tax returns, and people need to submit their profit and loss statements to avail such loans. Along with that, a letter issued by a certified accountant was needed as a supporting document. 

In the last 1990s, low doc property finance was introduced in the Australian markets. Such loans were launched by the mortgage brokers, like Mortgage Broker Belfast. They opened up a new way for the self-employed people to buy a new home or property, and they earned a huge interest from their loan doc property finances. Self-employed people did not have any other options, and they paid a high interest along with a large deposit for their property.

Within a few years, this product got huge popularity, and it entered into the mainstream financial market. Banks and other private lenders started giving such low doc property loans to self-employed professionals, and they have made a separate portfolio for this lending procedure. 

Things to know about Low Doc Property Loan: 

Although availing low doc property loan is easier, there are certain things that you must know before applying for such a loan. To avail such loans, you need to submit the following documents: 

• You must have a clean credit history. 

• Lenders can finance up to 80% on the total price of your property. 

• You need to avail of the lender’s mortgage insurance. Otherwise, you will be charged a higher rate of interest. Speak with mortgage brokers in Auckland to learn the process of availing one.

• You cannot mortgage your property to any other lender. The second-mortgage of the same property is strictly prohibited. 

• You need to submit your bank statements to prove your income stability. 

• You need to submit an income declaration stating your usual income. 

• You must submit your business documents where your reiterated business is mentioned. 

• You must have an Australian business number or ABN. (Applicable for Australians only) 

• You must submit your last one-year BAS or business activity statement 

• You must have an active GST number. 


So now you can search such low doc property finances online and choose the best deal according to your needs. Make sure you must check their interest rate, processing charges, foreclosing fees, pre-payment fees, and late fine before you apply. 

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