I was just reading an article from a broker about rates dropping and thought:
What's the lowest Low Doc rate these days?
Dropping???? I thought they are all heading in the other direction now that the Big Four have decided to multiply their fines by a factor of 15 and recover this in 12 months from increased rates under the assumption that
1: everyone will accept their lame story about the cost of money from o/s and no one really notices anyway, because after all its only a couple of basis points and
2: everyone will get wound up for a day or so, and then get comfortable with the new rates and forget to do anything.
but it would be good to know what the best rate going is?
It really depends what the loan function is? If it is a low doc self employed loan then Bluestone who have just secured a major financial backer have dropped their specialist rates by up to 3%
The key take away from all of this is to ensure that your clients NEVER let themselves be sitting on a standard variable rate. There are always discounts and other products available to reduce interest and fees on your loans.
Subject to qualification of course!!
We are both members of the F&C Facebook App and we have often been told by Admins of this site that these type of questions are lazy questions and are not allowed. We have all been told to enter the client's details into our CRMs and the answers will be forthcomng!
However as you are not a broker and are a sigificant contributor to that site on other matters, I presume you are talking about loans for O/O purposes. There are also Lo Doc and Alt Doc loans as some lenders call them but they are basically the same. And I certainly have not heard of them going down!
CBA have their Special Economiser Intro Rate Loan statrting at 4.29% for 3 years. 2 other 2nd tier lenders start their Lo Doc offerings at 4.54% and things go up from there to the very high 6s with some lenders. But as for going down, I doubt it. Hope this helps,
Bayside Finance Group
M 0418 547337
Good question, rates for low doc loan seem to have stabilised now since the GFC at about 0.5% higher than the corresponding full doc loan. It does depend though a lot on the purpose of the funds and the level of low doc documentation.
For example some lenders like CBA ask for everything short of a blood sample. As a result we often end up referring the client to an accountant who can finalise the tax returns and P&L for the business and then offer the client a full doc loan.
For those who can't supply the necessary BAS, and bank statements which does happen very often when people change business structure, there are lenders who can assist with a little as an accountants & client declaration.
For these loans with the tightening of other sectors in the lending market there does seem to be an increased appetite and as a result rates have been coming down
As with any scenario though the best option is to speak with a competent mortgage broker who can help you find the right product for your circumstances.
Hope this helps
Director Awesome lending Solutions
Low Doc interest rates are dependent on a few factors such as Owner Occupied or Investment, P&I or Interest Only, LVR, Fixed or Variable etc.
We have access to Owner Occupied, Principle and Interest rates of low-mid 4%’s on Fixed rate and mid-high 4’s on a Variable.
If you were looking at Investment Interest Only you’d be looking at low 5%’s for fixed and mid 5%’s for Variable.
These are general quotes and we’d need to look at the persons individual scenario in order to quote accurate interest rates but hope this is useful.