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7 Things You Should Know About Low Doc Loans

2. Varied form of interest Although, low doc loans are much easily accessible than standard loans, borrowers might have to shell some extra money in the form of rate of interest. The rate of interest in increased because the risks of loan defaults involved is greater than in the case of normal mainstream loans from banks. The person should be discreet and far-sighted in impending upon the lender that not only offers advance at a lesser interest rate than others in the market, but also charges no supplementary collateral. 3. Require additional security The additional fact that should be kept in mind while accessing low doc loans is that they require extra security. The amount of collateral required as pledge is far more than in the regular cases and hence the aspirant should be well versed with fact in advance. 4. Enhanced features One of the best features of the low doc loan is that the borrower gains extended access to a range of loan features and options that were previously unheard of low doc business loans Adelaide or available for him in the market. Such loans could also be termed as a time and money savers for the informal and self-employed workers who find it hard to avail loans. <br>For the original version including any supplementary images or video, visit

Low-doc loan market too juicy for the big banks

Macquarie Research estimates the market is worth up to $50 billion, or about 8 to 12 per cent of Australia's mortgage market. That's hard to ignore when the home loan market is slowing, business lending is becoming more competitive and banks are looking to diversify their earnings streams. Research shows a high number of self-employed borrowers live in the wealthier suburbs of Sydney and Melbourne." This week, National Australia Bank said it would start selling low-doc loans through its branches, after a stint selling them through its broking channel, HomeSide. Westpac is now pricing its low-doc loan products more competitively, and the regional banks are already there. Up to 30 per cent of Adelaide Bank's home loans are low-doc; Suncorp's is more than 10 per cent; while St George Bank's is less than 5 per cent. The majors are all at or less than 1 per cent. Macquarie Research estimates that NAB's entry into the low-doc market could deliver it additional profits of $37.5 million a year by 2007. The banks' push into the market is a marked turnaround from five years ago, when low-doc loans were dismissed as too risky. This allowed specialist lenders Liberty Financial and Bluestone Mortgages to build up dominant positions in a fast-growing and profitable market. Both these businesses are now considering a stockmarket listing or trade sale, following their success. <br>For the original version including any supplementary images or video, visit

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