Low Doc Loans with no BAS

Low Doc Loans with No BAS and no accountants letter are still available. For this low doc loan an ABN for two years and gst registration for one year is required.

These low doc loans will require twelve months trading statements for the self employed entity that is generating the income.

Currently there is no application fee, no ongoing fee and no early repayment fee with these low doc loans.

Why are you being asked for bank trading statements for the business entity generating the income?

Because under the new NCCP  legislation we must make reasonable enquiries to verify a borrower’s financial situation and objectives.

As well as self certification, lenders have been asking for supporting information, such as:
• bank statements
• cash flow forecasts
• wages/income verification
• accountants verification, etc

For this particular loan BAS are not required. Instead, the bank trading statements are needed to show income going through the business entity.



Exit Fees Banned

Starting today, Loan exit fees are banned. This includes low doc loans.

This new measure has been designed by government to make home loans more competitive..

“Part 7-2A ‘Prohibited credit fees and charges’ of the National Consumer Credit
Protection Amendment Regulations 2011 (No. 2) prohibits charging customers
termination fees if a credit contract is entered into on or after 1 July 2011.

Some non banks were charging very high loan exit fees, such as 1 or 2% of the original loan amount. They were so high they wiped out any savings consumers might get from switching to a cheaper home loan with a new lender.

Of course new loans, including low doc loans will not have loan exit fees, however there are a lot of low doc loans out there with deferred establishment fees already in place.

This increased competition will make it easier to switch to a better home loan deal if you become unhappy with your current home loan.

It means more financial choices and if lending institutions introduce unfair fees they can be fined.

For more information see the government home page of Banking Reforms.