Low Doc 85% LVR Home Loan
Low Doc 85% LVR Home Loan
Low doc 85% LVR home loans can be found with only a few lenders. Borrowing up to 85% LVR under low doc policy for a residential property can be difficult for most people. However, some lenders offer this loan product as long as it is supported with the required documentation.
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What is the maximum LVR for a low doc loan?
The maximum LVR for a low doc loan in Australia is 85% LVR. This means you will require either 15% contribution by way of deposit or equity to go towards the borrower’s contribution towards the transaction.
Lenders who offer 85% LVR low doc loan
There are 3 lenders who offer low doc loans 85% LVR in Australia. There is 1 bank, and 2 non bank lenders who offer this 85% LVR low doc loans. It comes as a surprise even to many brokers as this policy is not widely known.
Maximum loan amount for low doc 85% LVR home loan
The maximum loan amount acceptable for a low doc 85% LVR home loan is $850,000 for major capital city or metro areas. Other areas with lower population centres could have the maximum loan amount reduced. In this case it’s best to speak to a Mortgage Providers broker direct on 1300 656 660 to see the maximum LVR acceptable for your particular area.
Maximum loan term for a low doc 85% LVR home loan
You could take out a 30 year loan with a low doc 85% LVR home loan in Australia.
Calculators
Use our unique & innovative mortgage calculators to find out how much you can borrow.
Acceptable purposes for 85% LVR low doc loan
You could borrow using 85% LVR low doc loan policy for almost any purpose. This can include any of the following:
- Purchase
- Refinance
- Debt consolidation
- Cash out
- Owner occupied purpose
- Investment purpose
- Business purpose
Interest rate for low doc 85% LVR loan
The interest rate for an 85% LVR low doc loan can vary between the different lenders who offer this product. The bank that offers this product offers the same interest rate as their normal 80% LVR low doc. The other 2 lenders who offer low doc 85% LVR charge a slightly higher rate than a normal low doc loan. To get an accurate interest rate quote for this type of loan, please call and ask for a Mortgage Providers broker.
Requirements for a low doc 85% LVR home loan
The main requirement for a low doc 85% LVR home loan is predominately for the borrower to be self employed with a valid ABN. Further, the lenders who accept this policy require the borrower to be GST registered for a minimum of 6 months. Some of the lenders will require 12 and even 24 months GST registration.
Assessment method for low doc 85% LVR home loan
There are several methods which can be used to substantiate a low doc 85% LVR income declaration. This includes any of the following:
- Supporting accountants letter
- Business Activity Statements (BAS)
- Trading statements
Different lenders ask for different methods, but all 3 low doc 85% LVR lenders will ask for either of the above supporting documents or a combination of more than 1. In this case, it’s best to speak to a Mortgage Providers broker to be guided to the best lender for your particular situation.
At Mortgage Providers we are familiar with Low doc 85% LVR lenders and their policies. We can guide a borrower to the most cost effective lender suiting their needs should they require such a high LVR using low doc policy. If you have a scenario which you think fits this type of criteria, we invite you to call us on 1300 656 600.