Difference between Low Doc Loans and No Doc Loans

What’s the difference? As a guide

Low Doc Loans can be on either owner occupied, or investment properties.
They require an income declaration.
Should have an ABN for 2 years and be registered for GST.
A normal LVR is 60% without mortgage insurance, and 80% with mortgage insurance.
Rates on low doc loans are either at, or near home loan rates.
Normally a term loan of 25-30 years.

No Doc Loans

Must be on investment properties.
Do not require an income declaration, however will still need Assets and Liabilities position.
Do not require ABN or GST registration.
Normal LVR is 65%, however in some cases can go to 80%.
Rates are priced according to risk and are more expensive than low doc loans.
No Doc Loans are normally short term up to 3 years, however in some cases it is possible to go out to 25 years.

The above is a guide only and can change at any time.

Westpac low doc loans rise .45%

Westpac low doc loans rise .45% after RBA only moved .25%. This move by Westpac is proof that banks do and will move low doc loan rates as they please. Often we hear from low doc loan customers that they are concerned the non banks may be more expensive.

This move by Westpac clearly dispels that argument.

Treasurer, Wayne Swan has been less than impressed with Westpac’s extra rate increase!

St George Low Doc Loans will go up  .39%

Citibank Low Doc Loans to increase .39%

CBA low doc loans will rise by .37%.

ANZ low doc loans to go up .35%

Bankwest low doc loans move .35%