Low Doc Loans Could Be Your Answer
Low Doc loans? You probably think this is a silly statement. The point is that Low Doc loans are still out there, but you can expect that you will have to jump through more than one hoop to acquire one.
When a person takes out a Low Doc loan the rate is usually higher than the regular mortgage rate. But when you think about it, with the interest rates so low this may be the time to search out a Low Doc loan rather than sit on the sideline and wait.
With many rumblings worldwide about the market having reached the bottom, near the bottom, or even in some cases turning around, having a Low Doc loan with a slightly higher interest rate could be the answer for getting into the market right now.
If you can access one, you would need to carefully look at clauses about the rate increasing and about exiting the loan. It could be a case where you only take it for two years with the intention of refinancing in two years when it is expected that the market will have stabilised again.
Talk to your mortgage broker and see if there is any information available for you to consider.
Also check the insurance requirements on such a loan as these will most probably be different than they were in the past.
Filed Under: Interest Rates • Investment Strategies • Property News
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