Low Doc with Accountants Letter

Low doc loan with accountant's letter

A low doc loan with accountant's letter is a feasible option for clients who are not able to provide their financial records and tax returns, for any number of reasons. The accountant's letter acts as a supporting document for your application.

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Frequently Asked Questions

There are several lenders who offer low doc loans with an accountant’s letter. There are a number of banks and a few non-bank lenders who provide these types of low doc loans. The lending policy between these lenders differ so it’s best to consult with your Mortgage Providers broker who will find the best loan that meets your needs..

The maximum LVR that lenders will generally lend on an accountant’s letter low doc loan is 80% LVR. However, there is one lender who will lend up to 85% LVR up to a certain loan amount.

These loans are generally priced the same as other low doc loans. However, there are a small number of the lenders who will price these types of low doc loans approximately 0.5% higher than normal low doc loans.

An ABN (Australian Business Number) is required to be eligible for an accountant’s letter low doc loan by any borrower. Further, you will not be required to be registered for GST as long as your income declaration is under $75,000.

At the time of application, your ABN must be at least 6 months old to be eligible for an accountant’s letter low doc loan.

Low doc accountant’s letter lenders ask ONLY for a low doc declaration of affordability by the borrower and the supporting accountant’s letter to verify affordability.

With most low doc loan accountant’s letter lenders, lenders mortgage insurance is payable when you borrow over 60% LVR. However, there are 3 lenders who will lend up to 70% LVR with no mortgage insurance. In addition there is 1 lender who will lend to 80% LVR with No LMI. This could attract a slightly higher interest rate.

Low doc loans with accountant’s letter can be obtained for borrowers with bad credit with a small number of lenders. As these lenders are more bad credit lenders, this type of loan will attract a slightly higher interest rate.

What does a low doc accountant’s letter need to say?

The accountant’s letter low doc loan declaration is a template provided by the lender in addition to its normal low doc loan declaration. This template is attached to the original low doc loan declaration so the accountant can input his details and fill in the necessary blanks.

The main content of an accountant’s letter low doc declaration confirms the accountant’s details and registration details. In addition, the accountant confirms they are aware that the borrower has made an income declaration, and that this income declared is ‘not an unreasonable estimate of the borrower’s income.’

The accountant does not necessarily have to say what the borrower’s income is, rather just confirm that the income stated by the borrower is ‘not unreasonable’. Many practicing accountants will be familiar with the new declarations since they began in 2011.

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What names can I borrow using a low doc loan with accountant’s letter?

There are several different borrowing entity types using a low doc loan with accountant’s letter. These can be any of the following:

  1. Personal name
  2. Partnership name
  3. Business name
  4. Company name
  5. Trust name

At Mortgage Providers, we are known as the low doc loan specialists who know which lenders offer what types of low doc loans. We know which lenders offer the cheapest interest rates with the most flexible lending policy suiting any requirement. Call us today on 1300 656 600 or enquire online and we will contact you!