4.4 Limited Income Evidence (Low Doc)
Target Market: Suited to Self-Employed Borrowers who are unable to produce current financial information or documentation.
Benefits: Provides Self-Employed Borrowers access to residential mortgage finance without providing evidence of income. The borrower self certifies an income amount that is used to establish serviceability.
| Maximum LVR & Loan Amounts |
| Property Type | LVR | Category 1 | Category 2 | Category 3 | All Other |
| House/Unit | 0 - 80% | $1,000,000 | $750,000 | $500,000 | N/A |
| Vacant Land | 0 - 80% | $600,000 | $400,000 | N/A | N/A |
Maximum Loan Amounts apply on a 'per security' basis.
*Product Parameters as per Standard LMI section 4.1 to apply, in addition to product specific parameters listed below:
| Feature | Product Parameters (Summary) |
| *Loan Purpose | - Excludes:
- Refinance of investment loans
- Debt Consolidation
- Equity Release/Cash Out.
|
| *Security | - Size of property not to exceed 2.2ha (5 acres).
|
| *Deposit/Equity | - Must have existing equity in real estate OR
- Genuine personal savings of at least 20% equity of the property purchase OR
- If borrowers have recently sold property and are in the process of purchasing another, this requirement may be waived.
|
| *Borrowers | - Australian Residents only
- First Home Buyers discount not applicable.
|
| *Employment/Income | - At least one borrower must be Self-Employed
- All Self-Employed Borrowers must hold:
- An active ABN for at least 2 years
- GST registration for at least 12 months.
- Declared income and Assets and Liabilities position must be verified through:
- Past 12 months BAS Statements from the ATO
- BAS Statements will be required for each trading entity, should the borrower declare income from more than one trading entity on the LMI application
- Past 6 months personal transaction account statements (primary account only).
- Declared income should be consistent with the borrower's stated occupation and Assets and Liabilities position
- Must have a Net Disposable Income of at least 1.00:1 of total commitments based on declared income.
|
| *Credit History | - As per Standard LMI Product Parameters section 4.1.
|
| *Loan Term | |
| Repayment Type | - As per Standard LMI Product Parameters section 4.1.
|
| Maximum Borrower Exposure | - As per Standard LMI Product Parameters section 4.1.
|
| Premium Capitalisation | - As per Standard LMI Product Parameters section 4.1
|
| *Loan Features | - Excludes:
- Parenting Repayment Break.
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