If you have no proof of income or your income comes from a variety of sources, a Low Doc loan may be the solution. The lender will require that you ‘self-certify’ your income by signing a declaration which states the source and amount of your income. The lender will not require proof of this income.
If you are unwilling to state your income, the solution is a ‘No Doc’ loan. These loans allow the borrower to simply declare that the loan is affordable. The LVR is frequently lower than Low Doc loans and the interest rate is higher. These loans are available for investment purposes only.
Because lenders view these types of loans as high-risk, you will usually pay a higher rate than average and the products available to you will be limited. Some lenders will allow you to switch to standard loans if you provide evidence of your income – and you qualify for the loan.