Proving the low doc market is still alive and well, one lender has launched a new product that is said to offer more features at a cheaper price.
Yesterday Better Mortgage Management launched its 7.99 per cent Lo Doc Specialist Loan for self employed borrowers.
According to a company statement, the new capital specialist loan offers features not previously available with specialist loans including the capitalisation of fees above maximum LVR of 80 per cent, no requirement for GST registration if declaring less than $75,000 and ability to use an accountant’s letter to verify income if borrower has credit impairment.
In another first, borrowers with adverse credit can also now access finance for vacant land up to one acre in major metropolitan areas.
Borrowers in regional areas who may have previously been unable to access finance will benefit from an enhanced range of eligible areas including smaller regional towns.
The new loan also allows unlimited cash out up to 80 per cent LVR.
BMM managing director Murray Cowan said the new loan will help fill gaps in the market which had been frustrating brokers and borrowers for years.
“Many self-employed borrowers own small businesses aren’t legally required to register for GST where income is less than $75,000, so they will now be able to access a specialist loan which previously wasn’t the case,” Mr Cowan said.
“Another area creating roadblocks was the inability of borrowers with credit impairments to use an accountant’s letter to verify their income which I’m pleased to say has also been removed with our new loan.”
Mr Cowan said distribution of this new funding is limited and was previously only available to selected brokers, but now, via BMM, all brokers will have access to more options when assisting self-employed and credit impaired borrowers.