Low Doc 60% LVR
Low doc loans at 60% LVR are generally accepted by most lenders who offer low doc loans. This type of loan requires you to contribute 40% deposit or equity to complete the funding transaction. To be eligible for a low doc loan you must be self employed and have a valid ABN.
What is a Low Doc 60% LVR Home Loan?
A low doc loan at 60% LVR is a loan extending loan values not greater than 60% of the value of the property. To work out your LVR, please look up our LVR calculator.
Lenders who offer Low Doc 60% LVR loans
Many financial institutions accept low doc 60% LVR loans. However this does not mean all lenders will accept a low doc loan as some lenders have pulled away from these types of loans. The most recent example in 2012 is Bankwest who stopped offering any low doc loans.
Lending institutions who offer low doc 60% LVR loans include the following:
- Australian banks
- International banks
- Regional banks
- Non bank lenders
- Mortgage Managers
- Finance companies
- Credit Unions
- Building Societies
- Non conforming lenders
- Private lenders
Costs for 60% LVR Low Doc Home Loan
The costs for a 60% LVR low doc home loan are less than a low doc at a higher LVR. The main reason for this is due to the ability of lenders to write the loan on its own balance sheet and not seek Lenders Mortgage Insurance or LMI. Further at 60% LVR, most lenders who offer low doc loans charge similar set up costs to a normal home loan. Hence it is possible to set up a low doc loan at 60% LVR with No Set Up Fees.
Interest Rates for 60% Low Doc Loan
It is possible to get discounted professional package interest rates for a 60% LVR low doc loan. Further, you can get some special pricing for large loans over $1m.
Low Doc 60% LVR with Cash Out
There are a few very good lenders who offer unlimited low doc 60% LVR with Cash Out. the purpose can be for any purchase, debt consolidation or even business purpose.
Maximum Loan Amount for a Low Doc 60% LVR Loan
The maximum loan amount for a low doc 60% LVR loan is $2.5m. This loan amount can be found with 2-3 lenders. Other lenders cap their maximum loan amounts to either $1.5m or $1m. Call Mortgage Providers today and speak to one of our experienced brokers who will guide you to the most suitable lender for you.
Loan Products for Low Doc 60% LVR
The loan products available for a low doc 60% LVR can be any of the following:
- Professional Package home loan
- Lines of credit
- Fixed interest rate home loan
- Basic home loan
- Standard variable home loan
- 100% Offset home loan
- No LMI home loan
- Construction loan
- Bad credit home loan
- Refinance home loan
Requirement for Low Doc 60% LVR Home Loan
The most important requirement for a low doc 60% LVR Home Loan is being self employed and having a valid ABN. Further, many lenders require verification of income being declared by methods like:
- Accountants letter
- Business Activity Statements (BAS)
- Business trading statements
- Internal Profit and Loss (unaudited). This can be from your own book keeping.
Today, and namely post GFC 2008, lenders need to be satisfied that you can prove you can afford the debt being applied for with limited proof of income. Hence the requirement for the above information will help them determine your income declaration is reasonable, and you will not have foreseeable problems meeting your debt payments.
Advantages of Low Doc 60% LVR Home Loans
Low doc 60% LVR home loans are easier to achieve than higher LVR low doc loans. At 60% LVR for a low doc loan there are some lenders who only ask for an accountant’s letter in support of your income declaration whilst giving very competitive pricing. When No LMI is required, the loan has plenty of equity which makes lenders more comfortable with issuing loan approvals provided affordability is met.
At Mortgage Providers, we have access to all lenders who offer low doc 60% LVR loans. We know which lenders approve these loans with minimal paperwork and with great interest rates. If you have a low doc loan scenario and would like to know which lender can price it best at 60% LVR, then please give us a call and we will be glad to help.