Low Doc 85% LVR Home Loan
Low doc 85% LVR home loans can be found in Australia with a very small number of lenders in 2013. Borrowing up to 85% LVR under low doc policy for a residential property can be difficult for most people. However, some lenders offer this loan product as long as it is supported with the relevant documentation required.
What is the maximum LVR for a low doc loan?
The maximum LVR for a low doc loan in Australia is 85% LVR. This means you will require either 15% contribution by way of deposit or equity to go towards the borrower’s contribution towards the transaction.
Lenders who offer 85% LVR low doc loan
There are 3 lenders who offer low doc loans 85% LVR in Australia. There is 1 bank, and 2 non bank lenders who offer this 85% LVR low doc loans. It comes as a surprise even to many brokers as this policy is not widely known.
Maximum loan amount for low doc 85% LVR home loan
The maximum loan amount acceptable for a low doc 85% LVR home loan is $850,000 for major capital city or metro areas. Other areas with lower population centres could have the maximum loan amount reduced. In this case it’s best to speak to a Mortgage Providers broker direct on 1300 656 660 to see the maximum LVR acceptable for your particular area.
Maximum loan term for a low doc 85% LVR home loan
You could take out a 30 year loan with a low doc 85% LVR home loan in Australia.
Acceptable purposes for 85% LVR low doc loan
You could borrow using 85% LVR low doc loan policy for almost any purpose. This can include any of the following:
- Debt consolidation
- Cash out
- Owner occupied purpose
- Investment purpose
- Business purpose
Interest rate for low doc 85% LVR loan
The interest rate for an 85% LVR low doc loan can vary between the different lenders who offer this product. The bank that offers this product offers the same interest rate as their normal 80% LVR low doc. The other 2 lenders who offer low doc 85% LVR charge a slightly higher rate than a normal low doc loan. To get an accurate interest rate quote for this type of loan, please call and ask for a Mortgage Providers broker.
Requirements for a low doc 85% LVR home loan
The main requirement for a low doc 85% LVR home loan is predominately for the borrower to be self employed with a valid ABN. Further, the lenders who accept this policy require the borrower to be GST registered for a minimum of 6 months. Some of the lenders will require 12 and even 24 months GST registration.
Assessment method for low doc 85% LVR home loan
There are several methods which can be used to substantiate a low doc 85% LVR income declaration. This includes any of the following:
Different lenders ask for different methods, but all 3 low doc 85% LVR lenders will ask for either of the above supporting documents or a combination of more than 1. In this case, it’s best to speak to a Mortgage Providers broker to be guided to the best lender for your particular situation.
At Mortgage Providers we are familiar with Low doc 85% LVR lenders and their policies. We can guide a borrower to the most cost effective lender suiting their needs should they require such a high LVR using low doc policy. If you have a scenario which you think fits this type of criteria, we invite you to call us on 1300 656 600.