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Alt Doc Loans
For the self-employed or full-time investors, an Alt Doc (Alternate documentation) loan typically does not require traditional proof of income such as company financials or tax returns.
Instead Alt Doc loans (also known as Lo Doc loans) usually need to be supported by the borrower completing a declaration that confirms they can afford the loan. This is known as self-certification.
Who do they suit?
These loans are particularly attractive to self-employed or full-time investors who may have difficulty showing a high level of income that is normally provided with a ‘full-doc’ loan.
A key component of an Alt Doc loan may be an LMI premium. LMI (or Lenders Mortgage Insurance) protects the lender against any loss should you default on the loan. While traditional loans may require LMI if you are borrowing more than 80% of the property’s value, a Lo Doc loan often requires LMI on lower loan to value ratios.
How do I qualify?
To qualify for a Alt Doc loan, you will usually have to meet the following criteria as a minimum:
Self-certify your income
Confirm your self-employment status (if applicable. This is usually done by providing your registered ABN or an accountant’s certification
You will need to have a clean credit history and good repayment record
Still have questions? Ready to apply?
Understanding what you need in a loan and helping you navigate the many options is what we do best. Get in touch with us on 0418 340 485, or, if you prefer, you can email us using the form below. We are here to help!