No Doc Loan

No Doc Loans (no documentation), as the name suggests, are loans that are approved on the bare minimum paperwork. These types of loans are assessed based on a self-declared income position and do not require verification of income by any form of financial records. These loans are no longer provided by the major banks, however some lenders will still provide these facilities. Due to the National Consumer Credit Protection Act introduced in 2009, these loans are typically not available to “consumer” borrowers and will most likely need to be for investment or business purposes.

Whilst these types of loans can be approved with a minimum of paperwork, they incur a higher interest rate and fees for the privilege of doing so.