Borrowers with clear credit and without any form of evidence of income or a statement of assets and liabilities and who use only the value of the property as security, have two options; a securitised lender or private solicitor’s funds.

 

Securitised lender

As discussed, these loans are referred to as No Doc loans. They have the same terms and conditions as Lo Doc loans from the same lender. However, their maximum LVR is restricted to 70 per cent. They also have early-termination penalties for the first one to five years.

Private solicitor’s loan

The monies lent through private legal practices are the private funds of individuals. The incentive for the legal practice is receiving an application fee, a fee for preparing the mortgage documents and, in some cases, a fee for collecting the interest from the borrower. The loans are normally restricted to a maximum LVR of 65 per cent and to terms of one to five years.