A low documentation loan is normally for self employed applicants, however some non-conforming lenders allow PAYG applicants (contract workers) to apply for a low  documentation loan.

The majority of traditional lenders like the major banks have limits ranging from 60 to 80% of the value of the property as    maximum borrowings for low documentation loans, with an additional .5% to 1% interest rate above the standard variable rate (currently 7.32%) meaning the loan is normally more expensive than a full documentation loan.

To apply for a low documentation loan, your credit history needs to be in order.

The loans are available to self   employed applicants who have not completed their current tax returns and wish to self certify their income. In other words you certify to the bank your current annual income. However some lenders may require a letter from your accountant confirming income.

This is a complex area of lending and should you wish to discuss this in depth or apply for a low documentation loan please contact Bays Home Loans on 59777994.