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Low Doc home loans are often perceived as higher risk by the lenders, because the income of the borrower cannot be substantiated by conventional means. As a result, a Low Doc loan would usually have a higher-than-average interest rate; plus more limitations in terms of the maximum Loan to Valuation Ratio (LVR), available loan features and package discounts.
A self-employed borrower would typically need to provide proof of income using a combination of the following:
Proof of ABN and/or GST registration
Business Activity Statements (BAS)
Business Account transaction statements
Accountant's letter
Personal tax returns |
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