A Full Doc loan is a standard or ‘normal loan. Full doc loans are available to PAYG income earners as well as the self-employed .The term Full- Doc refers to the fact that all income and all assets are disclosed and verified with appropriate documentation. If you qualify for a Full- doc loan, you do not require any special consideration and this means you will be eligible for the best loan products and have access to the best interest rates on the market. The interest rates advertised in the media by the banks are for Full-Doc loans.
1) Do I qualify for a Full-doc Loan?
You need to be able to supply current documents that verify your income so the bank can determine your ability to repay the mortgage. Your level of income should be sufficient to satisfy the bank’s criteria. Your employment situation should be stable and you will need to provide proof of this in the form of an employment contract or similar documentation. Formal verification requires the borrower’s and the borrower’s employer to verify employment and income via pay slips, Group certificates and or tax returns, frequently all of these documents are required.
You need to be able to supply the most recent 2 years of full financial statements for your business (Profit and Loss, Balance Sheet), 2 years of business tax returns, 2 years of personal tax returns, bank statements and further documents may be required depending on the bank.
2) What features are available with a Full-Doc home loan?
All features are available with a full-doc loan, depending on which lender you go with. Common features are Re-draw facilities, ability to make extra repayments, interest only facilities,loan portability, repayment holidays, loan splitting.
3) Which types of home loan products/features can I choose from?
All home loan types are available if you qualify for a Full-doc home loan and also have a good credit history and a good deposit. These include basic home loans, 100% off-set accounts, fixed rate loans, variable loans, line of credit home loan and ‘professional packages’. Please go to ‘Loan Features’ for more information.