Construction loans under low doc policy are accepted in Australia like normal construction loans. Under low doc policy you will not need to provide the normal income documents generally required for a full doc loan. Best of all, these types of loans can be done with several major lenders and other second tier lenders at competitive interest rates.
What is a construction low doc loan?
A construction low doc loan is in essence a low doc loan used for a construction purpose. This type of loan is similar to a normal type of loan except that the facility is being assessed and approved with little income paperwork.
Maximum LVR for a low doc construction loan
The maximum LVR you will be able to get a low doc construction loan is 85% LVR. This can only be done with 1 lender in Australia up to $400,000. Most other lenders will lend up to 80% LVR, with some lenders only considering low doc construction loans under 60% LVR.
Assessment methods for low doc construction loans
You could get a low doc construction loan using all types of low doc assessment methods. These can include the following;
- No BAS Low Doc
- With BAS Low Doc
- Low Doc Accountants letter
- Trading accounts low doc
- Income declaration low doc
Requirements for a construction low doc loan
The lenders who approve construction low doc loans generally require you to be self employed to qualify under low doc loan policy. Further, they require a signed builder’s contract together with the relevant council approved plans for the proposed construction.
Loan types available for low doc construction loan
Most lender will do a low doc construction loan using a variable rate loan. There are a small number of lenders who will offer other loan products. You will be able to get a low doc construction loan using any of the following loans;
Interest rate for construction low doc loan
The interest rate for a construction low doc loan can be the same as a normal full doc loan depending on the lender that is used. There are some lenders who charge a slightly higher rate in some cases, but this is not always the norm. It’s best to speak to one of our Mortgage Providers brokers in this case to get the best advice.
Lenders who offer low doc construction loans
The lenders who offer low doc construction loans are many. Low doc construction lenders can include any of the following;
- Major banks
- Regional banks
- Non bank lenders
- Credit unions
- Building societies
- Mortgage managers
- Non conforming lenders
At Mortgage Providers, we are low doc loan specialists and know how to get you the best construction low doc loan. We know which lender prices this loan like a normal loan and with the minimal fuss. Call us today, and we will make your construction low doc loan process easy.