No-Doc loans (otherwise known as self cert) operate in much the same way as a Low-Doc loan, but differ primarily in the amount of documentation required to convince lenders to write the mortgage. Whereas Low-Doc applicants must show evidence of either business or personal income through bank statements or tax returns, No-Doc operates on the principle of self certification: a statement signed by you declaring your business income will suffice for a No-Doc product.
Positives of the No-Doc Loan:
The No-Doc is extremely convenient for self-employed people who would prefer not to disclose the source of their income. There is no loan application form requiring the borrower to disclose their income or assets and liabilities (generally referred to as a borrower's statement of position).
- No-Doc loans are ideal for credit worthy borrowers who want maximum privacy and can afford to pay for it.
- A borrower may require a No-Doc loan because he or she is self employed and cannot supply tax records as proof of income, aged over 65, a contract or seasonal worker or a recent arrival in Australia.
