Login
ISCOVER
Jessica Darnbrough
Proving the low doc sector is still alive and well, one lender has reported a spike in applications for this type of loan.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Collins Home Loans said low doc applications had surged recently thanks to RESIMAC’s recent specialist lending roadshows.
The roadshows, which featured well known legal figures and a panel of industry experts, helped allay the fears of brokers wanting to originate low doc loans since the introduction of NCCP.
Collins Home Loans general manager Allan Willoughby said since the introduction of the new legislation, brokers had become increasingly nervous about writing low doc loans, as they feel the loans do not comply with NCCP.
“This fear is far from the truth and with the proper verification of income and enquiries to the borrower regarding their financial position NCCP issues are taken care of,” Mr Willoughby said.
“Collins Home Loans has a range of low doc and specialist loans starting from 7.79 per cent for loans up to 70 per cent LVR and 8.54 per cent for loans up to 80 per cent LVR. Unlimited cash is one of the main features of our specialist loan product range.
“Collins also has a NIL application fee special running at the moment until the end of July to help brokers increase their low doc and specialist volumes.”
Mr Willoughby said specialist and low doc loans can help borrowers that have a hiccup in their credit history and are looking for a second chance to get back on track.
“Specialist lending can be thought of as being difficult or daunting if a broker only does one or two low doc/specialist loans a year. This is where Collins credit staff can help out by guiding the broker through the application and serviceability process,” he said.
