What is a Lo-Doc Mortgage Loan?

It's a finance-industry term referring to the income evidence required by a lender (mortgage or finance) to prove your ability to repay the loan.

Do You Need to be Earning Income?

Yes. Th common misconception about Lo-Doc loans is that you don't need to be earning income. You need to be earning income, but you may not necessarily have to prove your income.

A standard loan application will ask you to provide proof of your income (e.g. Tax Returns, Company Profit and Loss and Balance Sheet Statements, etc.), but most Lo-Doc loan applications only require you to sign a declaration confirming your income.

Who Would Need a Lo-Doc Loan?

Lo-Doc loans are generally used by self-employed persons, because they may not have their Financial Statements or Tax Returns completed, at the time they require a loan.

What Are the Pitfalls?

Each lender has a different criteria for Lo-Doc loans, so you need to be sure of exactly what is required, so you don't waste your time preparing a loan application that may require documents that you don't have (e.g. current Business Activity Statements).

If you need help determing if you meet a Lo-Doc loan application criteria, Contact Us for a free financial assessment.