Everything About Low-Doc Home Loans

Post : October 30, 2022

If you are a self-employed individual who is also low on documents, then applying for a home loan can be agonising. We understand that even though you need a home loan, without the necessary documents, it is not easy to apply for one. This is where Low Doc Home Loans make way. 

You might be wondering what Low Doc Home Loans are. Well, we'll explain it to you. 

What is a Low Doc Home Loan?

Low Doc, which means Low Documentation, is a loan designed for those with assets and income who cannot provide the necessary financial records or tax returns to apply for a standard home loan. 

The borrowers of Low Doc Home Loans are those who have income streams that are difficult to document through a typical mortgage application. Please know that Low Doc Home Loans cater to individuals in all professions. 

How Does it Work?

A self-verification process is used to confirm income details for Low Doc Home Loans. A declaration document is signed by the borrower, which outlines the individual's earnings and where and how they come from.

Through this process, an individual who starts as a freelancer doesn't have to beat himself up with many income statements. Even if you are self-employed, keeping your financial records up to date is essential.

What Are The Required Documents For Low Doc Home Loans?

If you are applying for a Loc Doc Home Loan, you must provide your lender with certain information. Providing specific information will help the lender decide if it is safe to lend to you and if you can repay your mortgage.

Even though Low Doc Home loans don't require much of the usual documentation like that of a standard home loan, lenders do still require some documents such as: 

  • Bank Statements

Providing bank statements is necessary because it shows the amount of money that enters your bank account and the expenses in your profession. This is a means of showing how well your venture is performing even if you are self-employed.

  • Letter from your accountant

Submitting a letter from your accountant as evidence will be helpful when applying for a Low Doc Home Loan as self-employed. This will provide an outline of the condition of your business finance.

  • Business Activity statements (BAS)

A business activity statement displays the kind of tax obligation your business is subject to. Statements from the past 12 months will be needed.

  • Signed Borrower's Income Declaration Form

In some cases, it is permissible to provide a signed Borrower's Income Declaration in place of proof of income in an instance where you cannot provide one. This assures the lender that you will make the necessary payments throughout the mortgage.

  • Registered Business Name

You will need to provide basic information about your business as a low-doc home loan considers the income as made by your business. 

Islamic Finance Low Doc Home Loan facilities

Some lenders may ask for a higher interest rate, so picking the right Low Doc Home Loan lender for your needs is essential. You know we can't deal with interests if you are an Australian Muslim. That's precisely why Afiyah Financial Services come to your rescue. 

Most self-employed Muslims who wish to purchase their own home do not pursue it due to the unavailability of halal Home Loans. As we offer you Low Doc Home Loan facilities within Islamic rulings, now you can easily fulfil your dream of owning a home without worry. 

The following types of properties can be financed through our Islamic Low Doc Home Loan facility:

  • Residential property
  • Retail property
  • Industrial property
  • Commercial property
  • Construct residential property

As we cover a range of residential loan facilities, you can apply for a Low Doc Home loan to build a new home, purchase a new home, purchase an established property, land or even an investment property. 

Why choose us?

As a freelancer or self-employed individual, you may not want to go through a complex application process for a Low Doc Home Loan. We at Afiyah offer a simplified process to all Australian Muslims to apply for Low Doc Home Loans for individuals with or without regular income. 

We also offer personalised services to each individual and walk you through the whole process to understand your situation better and help you make the right decision based on your financial stability. Our objective is to provide Low Doc Home Loan solutions according to Australian Laws while complying with Islamic Shariah. 

For those individuals in the Australian Muslim community who have been struggling for years to find a perfect Low Doc Home Loan facility that follows Islamic Shariah, we are here to help to make your dream come true. 

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