Low Doc, No Doc.. What does that even mean? Self-Employed clients, listen up!
These terms get thrown around quite a lot between Broker, Client and Accountant and I wanted to briefly explain the type of lending that it is.
A "Low Doc" or "No Doc" is an application that basically explains itself.
It is where the bank’s requirements for income are lower than a standard application or no information.
They still require all other information in relation to your application such as Identification, Security, Accounts, etc but the benefit is less Income verification.
This generally suits contractors or someone that doesn’t tick the usual application process.
A “Full Doc” application is the standard application process where we need to disclose your full tax returns, financials and generally BAS statements up to date, depending on which lender.
-Please note: All Banks’ policies are different to the next so its important to engage a Mortgage Broker that understands your Business and can recommend the right Lender for you.
The benefit of this type of funding is it is generally a quicker process as the credit provider does not have to work through all of your financials.
And for the client your financials may not be up to date, so it saves having to wait for your Accountant to prepare all your Financials so we can proceed with an application straight away.
If anyone would like to know more information, please contact us today to get started.
