Lo doc home loans & mortgage insurance
Lo doc home loans with no lenders mortgage insurance
Lo doc home loans with an LVR of over 60% require mortgage insurance if you want to access major bank loans. This can mean that you not only have to meet lenders guidelines, but also the policies of the mortgage insurers – and these can be much more rigid.
For example, the two major mortgage insurers will generally not allow the refinance of investment loans under their lo doc home loans policy. Both have limits on individual loan amounts and borrowers’ total exposure (even across different lenders and properties).
At Mortgage Experts, we are highly experienced with the various lending policies and with our knowledge we can sometimes work out ways around them! For example, did you know that two first tier lenders with whom we have relationships have delegated lending authorities with their chosen mortgage insurers? That means that as long as a loan fits into agreed parameters (the main parameter being a maximum loan amount) the lender can approve a loan without it having to conform to the insurer’s policy. So although the loan is still covered by mortgage insurance you don't have to have it fit the insurers policy which as stated above can be very onerous.
If you are considering a lo doc home loan it is best to talk with us first. Too many credit enquiries and any declined loan application will affect your chances of getting a lo doc home loan approved.
70% LVR no mortgage insurance!
The good news is one regional bank who is also a wholesale funder to the non bank sector has introduced a lo doc product where you can finance up to 70% LVR without mortgage insurance for both purchases and refinances (with some conditions).
Are there alternative lo doc lenders with different policies to the banks and non bank lenders for 80% lo doc loans?
Yes. There are a number of alternative lenders in the market of whom you may be unaware. These lenders can offer lo doc home loans up to 80% LVR with no mortgage insurance. If we can’t make your situation fit with a major bank, regional lender or non bank lender we can look at all the alternative options for you.
At Mortgage Experts we are a true broker and are not restricted to choosing from a limited lending panel. If we can find a lender that can do the loan for you and is willing to deal with a broker, we can make it happen.
You may be surprised that some of these lenders’ products are quite competitive. Call us to discuss.