Today many lenders offer alternatives for self-employed people and others with no traditional proof of income. Be ready to ask lots of questions in order to set the best loan for your own situation.

One of the options available could be a quick and easy finance product called a lo- document loan or lo- doc loan for short. This type of loan caters mainly for self- employed borrowers who are unable to provide full financial statements and other evidence of their income.

Low doc products on the market keep changing regularly to suit the needs of the borrower.

Borrowers also get access to a range of loan features and options never previously available.

However, most lenders require lo-doc borrowers to take out lenders mortgage insurance when borrowing up to 80% of the property value. Some lenders also charge a higher interest rate for these products. These rates may be reduced after a certain time period or when you are able to provide tax returns.

Overview of the Low Doc Loans

• less paperwork – requires self – certification instead of traditional proof of income
• streamlined application process
• can only borrow up to 80 per cent of property value
• interest rate discounts may apply after specific time period or if able to supply tax returns at a later date.
• require a credit card statement that has been paid on time.
• lenders may not lend in high risk areas such as inner city high-rises or large rural allotments
• generally higher interest rates with less features than a traditional loan
• may require lenders mortgage insurance, adding to cost of loan