Low docs to cease...?

Is this reason to become PAYE, pay your taxes and lodge your return with hopefully a good income....?

Source: SMH http://au.pfinance.yahoo.com/091119/1/ipo.html
Low doc loans still available - but not for long
Friday November 20, 01:10 AM

Low Doc home loans where the borrower self certifies their income and ability to repay the loan may disappear from the market when responsible lending rules are introduced next year.

There are currently 58 low doc loan products available from 32 lenders according to Infochoice. Rates on low doc loans range from 5.38 per cent to 8.49 per cent, compared to 6.2 per cent or 6.3 per cent for a standard variable loan with a big four bank.

The head of mortgages at Bankwest, Dean Gillespie, says the demand for low-doc loans has remained constant but Bankwest, like others, has increased scrutiny of applications.

We are asking more questions. We are wanting to see their ABN, that they're registered for GST, to see that they're a legitimate low-doc borrower.

Credit ombudsman Raj Venga says lenders will soon have to comply with responsible lending rules requiring them to determine that a loan is not unsuitable

I think it will make it very hard to have a low-doc loan he says.

The responsible lending laws apply to non-bank lenders from July 1 and to banks from mid-2011.
 
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Yea, the days of a no-doc are gone.

Lo-doc's depend on the lender, but generally require BAS statements and trading statements, so may as well be a full doc.

The other option is to pay a higher price if you want to provide less documents.

Never say never, when the financial landscape improves, things may come full circle.
 
So Rolf, it is happening?
Are you able to give a few more details?
If this is happening then l know l will need to get my dollars sorted. l would hate to be caught off guard.
cheers
yadreamin
 
Hiya

Comm at 60 % is hardly a risk proposition.

Just like resi at 80 isnt.

If ur funder wants their capital back, they will find a way.

To be placed into "default" isnt hard under most resi loan contracts, lo doc or otherwise.

i dont believe it will happen.........but then I didnt think that Citi would ask for its capital back on perfect loan conduct either ........remembering that lenders make money on loaning capital

ta
rolf
 
They are alive & well, just not at stupid LVRs as they previously were.
I was told 60% easy, 70% depends on resi.
So I filled out the forms and away I went.
 
lo docs back in action

Just got this information sent to me from my MB
no BAS required 80% LVR

Bankwest

Adelaide Bank via Homeloans limited

NAB

All of these are mortgage insured via QBE
Maximum loan amount per client can be up to $2.5m but will do $1.5m

Adelaide Bank via Homeloans limited will only do a purchase and the others I am waiting to see if they will do a refinance

Cheers, MTR
 
True

with one little hitch ................No IO unless LOC

And I have actually found their credit quite precious with anything lo doc unless its via retail.

ta
rolf
 
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