The cash rate essentially dictates how much money a person will have to repay on their bank loans. The Australian government controls this decision which can change a number of times each year, although recently it has not.
The current rate of 2 per cent is an indicator of how much money a lender has to pay in order to access funds from authorised deposit-taking institutions, according to the Reserve Bank of Australia.
So why does this point you towards taking out a low doc home loan?
The advantage of being your own boss
Rather than approaching a bank and needing to supply a truckload of information to just apply for a mortgage, a low doc home loan from Redrock allows you to cut down on the required paper evidence and declare your own income. You will also need a letter from an accountant, but this type of loan is perfect for people with irregular incomes and those who run their own small businesses that otherwise don’t have all the documents that a bank requires.
Where somebody has their own business or works sporadically and an irregular income is unavoidable, a low doc home loan will ensure that no matter your situation, there is a way around it. For many Australian SMEs, this is a fantastic option because of how accessible it is and how flexible the terms of the loan can be. There won’t be anything standing in the way of your dream property with a low doc loan.
Taking advantage of the current market
A rate of just 2 per cent is a far cry from the 1990 figure of 17.5 per cent. While that rise is unlikely to occur in the near future, there could be an increase this year and that means interest rates will rise. To get your foot into the market before that happens, talk to Redrock and see just what the team can offer you and get onto the ladder sooner rather than later.