What can you use a low doc loan for?

Low doc home loans – are they only for self-employed people wanting to buy a house?

Low doc home loans are primarily used by small business owners who may not have the documentation required to apply for a “standard” home loan. Beyond the purchase of a house though, low doc loans can be used for other purposes.

This year CANSTAR has researched 58 low doc loans from 14 lenders. We found that with the surveyed institutions, you can potentially draw down a low doc loan (subject to loan approval) for the following types of uses:

What can I use a low doc loan for?

Loan Purpose Availability
Loan Purposes Institutions
Personal Use AMO Group

ANZ

Bank of Melbourne

BankSA

BOQ

Commonwealth Bank

Homeloans

Liberty Financial

Pepper Money

RAMS

RESI Mortgage Corp

St George Bank

State Custodians

Westpac

Business Purpose ANZ

Homeloans

RAMS

State Custodians

Westpac

Refinancing AMO Group

ANZ

BOQ

Commonwealth Bank

Liberty Financial

Pepper Money

RAMS

RESI Mortgage Corp

State Custodians

Westpac

Share Purchase AMO Group

ANZ

BOQ

Commonwealth Bank

Liberty Financial

Pepper Money

RAMS

State Custodians

Westpac

Consolidate Debt AMO Group

BOQ

Commonwealth Bank

Liberty Financial

Pepper Money

RAMS

State Custodians

Westpac

Equity Release AMO Group

ANZ

BOQ

Commonwealth Bank

Liberty Financial

Pepper Money

RAMS

State Custodians

Westpac

Repay ATO Debt State Custodians
Repay Business Debt RAMS

State Custodians

Source: www.canstar.com.au. Based on information provided to Canstar from the financial institutions assessed for the 2016 Low Doc Loans ratings report. Correct at time of writing.

Just because you can get a low doc loan for various purposes, though, doesn’t it mean it will automatically be a good idea. Sometimes you might be better off with a personal loan, or a business loan (both of which you can compare on our website).

Low Doc Loan

This is because banks treat lending to those who are self-employed or have fluctuating incomes as bringing a higher level of risk, and they compensate for this by charging higher interest rates and fees on average.

So the key message is, be sure to do your research before diving in. You can compare low doc loans researched by Canstar on our website.

Compare Low Doc Home Loans with CANSTAR

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