Features and benefits of Low Doc Loans

Features of Low Doc Loans:

* The Low Documents loan is basically a standard variable or fixed rate loan, but with few credit criteria like- low documentation.

* As the documentation part is not required, so it is quite risky to the lender and it is reflected in the higher interest rate and here loan-to-valuation ratio (LVR) is 65 - 80% which is apparently higher by 0.5% to 1% higher than standard loans.

Other useful features include redraw facility, offset accounts, direct salary crediting, portability & repayment options depending on the lender and on the type of loan.

Benefits of Low Doc Loans:

* It is specially designed for the self-employed and the persons with good credit records.
* It requires almost no documentation.

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