Is your mortgage broker or account executive urging you to refinance your mortgage using a doc home loan? Why are they going to recommend this kind of program?
Well no-doc loans are not as common as they once were, but if you are self-employed or have a highly variable income, you can still get a home loan. To get more information about no doc home loans for self-employed you can visit www.comparez.com.au/home-loan-self-employed.
Image Source: Google
There are a few reasons why it is not possible to use doc home loans and there are a few reasons why you might want to use them. Here are some circumstances for which they are good and for which they are not perfect.
First, if you're working for yourself and running your own company, then you've been built for the no doc style home loan. It's a loan that lets you claim what your salary is and don't need to prove it.
Because many self-employed people don't say anything they make, they end up having trouble proving their real income. It happens a lot when you've got a lot of people paying you in cash. This is the perfect situation to use a no doc home loan in.
Second, if you collect tips and don't demand them all, then it's probably a very good idea to use some kind of no-doc system to refinance your mortgage.
Finally, if you're working for a company that pays you a regular paycheck whether bi-weekly, weekly, quarterly, bi-monthly, or any other way, you're NEVER going to use a no-doc home loan.