With the growing number of self employed persons in the Australian economy Low Doc loans are gaining popularity. Low Doc Loans are designed to assist borrowers who by virtue of their employment do not have the same level of income verification as PAYG applicants.

Melbourne Mortgage Broker What If We Finance says that despite the Global Financial Crisis Low Doc Loans continue to exist in the market. They are a valuable tool for self employed applicants if used correctly".

Low Doc loans do not require the same amount of paperwork as traditional home loans and rely on self verification where you state your income without the need for verifying documentation.

Low doc loans are designed to assist those with existing equity and have trouble showing evidence of regular income. Different lenders have different rules about Low Doc loans so contact your Mortgage Broker today.

When applying for a Low Doc loan What If We Finance advise to look out for:

• Low doc loans generally have certain conditions and extra costs attached, such as higher interest rate, although the more financial documentation you can produce, the lower the rate often is.

• Additional and inflated fees and charges.

• Compulsory mortgage insurance.

Low doc loans are not suitable for everyone and the potentially higher fees and charges could be financially damaging .

Contact your Mortgage Broker to see if Low Doc loans are for you.