How to obtain a home loan without itr Financial Statements?

Decoding Low Doc Home Loans

Low doc home loans (also known as low documentation loans) are a very flexible lending solution for self-employed people, property investors, people who do not work regular jobs or for new families who have just moved to the country. This loan type has taken off in recent years to assist people who have been rejected by mainstream lenders/credit providers.

Suitability of the home loan without itr Package

Low doc home loans have allowed thousands of home buyers to access a home loan. This loan is specifically suitable for people who have assets as well as income, but cannot provide adequate financial statement or tax return as documented evidence of income. Here is a list of people who are suitable for the loan:

>> Self-employed people who may only pay themselves a standard wage and run their business in a way that means they fall into a lower tax bracket to avoid income tax

>> Property investors who may have varied income from month to month and from year to year

>> Contractors and seasoned workers who don't work regular jobs, and

>> New families who have just moved to the country and may not have pay-slips or tax returns from the work they have been doing since they arrived

Income Verification Process

A low doc home loan enables you to self-certify your income, where you state your income (what you make) on a "Declaration" document and, the lender/credit provider will NOT verify your income by using masses of documentation otherwise required such as tax returns, BAS statements and more.

Restrictions

The conditions for low doc home loans are more restrictive than standard residential loans as they provide a higher level of risk to the lender/credit provider, for example:

>> You cannot borrow more than 80% of the value of the security property, and

>> Any low doc home loan with a loan-to-value ratio (LVR) higher than 60% will incur a lenders mortgage insurance (LMI) premium

Factors Considered by Lenders/Credit Providers when determining the home loan without itr Interest Rate for Low Doc Home Loans

Here is a list of factors that lenders/credit providers consider when determining the interest rates:

>> At least 20% deposit (you do not have to show evidence of savings)

>> Nature of and the security property type

>> Client credit history

>> Loan size amount

>> Aggregate of total exposure to the lender/credit provider

>> If self-employed, the period the client has been in business

>> Age of borrowers, and

>> The purpose of seeking finance

Seek Expert and Professional Advice

Before you start the process of obtaining loans on your own, you should first seek the expert assistance of a professionally qualified finance broker who specialises in home loan without itr. Having a specialist finance broker on your side will save you lots of time and heartache. The finance broker will negotiate on your behalf with specialised lenders/credit providers to secure your eligibility for the loan not to mention get you the best deal.

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