ANZ has now joined with the other banks to implement changes to its ANZ low doc loans. This is in line with the responsible lending guidelines under the NCCP. Westpac has been for a long time requiring BAS statements on its low doc loans. CBA has just recently changed its lending criteria and low doc loans policy and now require BAS on all low doc loans irrespective of LVR. Suncorp also require BAS on all Suncorp low doc loans.
So in conclusion, the lending criteria for major banks is now changing rapidly, and BAS is now part of the landscape.
We are now seeing low doc loans harder to obtain.
There has been a real tightening of credit policy by the banks. The days of the low doc declaration only have disappeared. Banks are now starting to take a “limited income evidence” approach. CBA have just changed their low doc loans policy to require BAS statements on all low doc loans.
Further, we have just seen RAMS Home Loans founder John Kinghorn warn that home loans to self employed may dry up.
What does this mean for those looking for low doc loans?
Lenders are looking for further verification as to the income declared. This can take the form of bank trading statements, BAS statements or an accountants letter.
Currently the more difficult low doc loans are 80% low doc refinances and construction.
Low Doc Construction Loans