Documents you’ll need for a low doc home loan application

Applying for a low doc home loan means you will have to supply your potential lender with some specific information. This will help them determine whether you’re likely to be able to make repayments on your mortgage and be a safe enough choice to lend to.

The very nature of a low doc home loan is that you won’t have the same paperwork to hand as a normal borrower, but there are some items you can provide to show a lender you are trustworthy.

Here are just some of the documents you’ll need to put together before making that all-important first approach to a mortgage provider or broker.

Bank statements

The most effective way of showing how well your self-employed venture is performing is to provide the necessary information in the form of bank statements. These will show how much money enters your account and the expenses you incur as a result of your profession.

Business activity statement

A business activity statement is tailored to the specifics of each company and illustrates which tax obligations it is subject to. This encompasses everything from goods and services tax through to pay as you go withholding and instalments. Evidence from the past 12 months should be provided.

Letter from your accountant

Written evidence from your accountant can also prove beneficial when applying for self-employed home loans. This should outline what condition your business finance is in and act in support of the other documents you are presenting to a lender.

Signed Borrower’s Income Declaration

If you are unable to provide proof of income then it is sometimes possible to provide a signed Borrower’s Income Declaration in its place. This will provide some level of assurance to the lender that payments will be able to be met throughout the duration of the mortgage.