The Low Doc Portfolio Loans is a line of credit designed to cater for individuals with fluctuating incomes such as the self employed or investors.
The Low Doc Portfolio Loan is designed to cater to business owners, the self employed and those who don't have proof of a Pay As You go (PAYG) income. This line of credit is flexible and allows you to combine your investment and personal finances into a single loan. You can create sub-accounts under your loan and these can be effective in helping you manage your finances and loans with greater ease. You are allowed to create as many as 10 sub-accounts and these come with their individual statements and interest rates.
Things to consider about this loan
As the name implies, this line of credit is designed for the self-employed and other individuals who want access to a line of credit but who can't provide PAYG income evidence. Bank SA offers their Portfolio loan for those who can provide full documentation. They also have a range of variable rate and fixed rate loans.
It's important to note that while you have the choice to select either the variable or fixed interest rate for your sub-accounts, the primary account will always be subject to the variable interest rate.
It should also be noted that the Low Doc Portfolio Loans is a revolving line of credit and as such the interest rates only apply to the outstanding balance. You can select your preferred payment schedule provided it's done at least monthly.
Features of the Low Doc Portfolio Loan
- Flexibility with repayments: Borrowers have the freedom to select their payment frequency. However, payments need to be made at least every month. Additional payments on variable interest rate accounts can be made at any time. Sub-accounts with fixed interest rates also can make additional payments and these are capped at $10,000 per year. Paying more than this amount per year can attract break costs.
- 24 hour access to funds: Your account is accessible 24/7 through phone and internet banking, ATMs and EFTPOS.
- Rate lock: You can lock in an advertised fixed rate for a period of 90 days before the interest rate on your current home loan comes to completion.
- Simplified organisation: The ability to open up to 10 sub accounts means you can separate your loan based on the different ways you're using your money. You'll also receive a monthly statement for each.
- Deposit Protect Bond: You don't have to pay a cash deposit, instead you can take advantage of a Deposit Protect Bond and increase your interest earnings. A Deposit Protect Bond guarantees your seller that you'll pay the deposit money. This is handy in the event that you can't access funds straight away and can be taken out for up to 10% of the purchase price of a property.
The Low Doc Portfolio has a number of fees which every borrower must pay and some fees which can be avoided.
Fees you can avoid
- If you choose to open a sub-account they come with a fee of $100 each.
- A fee of $10 is charged if you want to change a primary sub-account
- To get a duplicate of your sub-account statement you'll pay $10 per statement
- Changes to payment requirements, interest rates and interest rate options are all charged a fee of $500. This fee is per request.
- The rate lock fee is charged if you wish to lock in a fixed rate on part of your Low Doc Portfolio loan. As mentioned, it locks the rate in for 90 days, which means you'll get the advertised rate even if rates change during the time taken for your application to be approved. This comes with a fee of 0.15% of the sub-account credit limit or (whichever is greater).
Fees you can't avoid
- All Low Doc home loans are charged an establishment fee of .
- Monthly and annual administration fees apply. Monthly fees are $17 for each sub-account, or you can pay annually for all sub-accounts.
- Loan discharge fees apply for all Low Doc Portfolio Loans that are discharged within the first three years of the loan's settlement date
Applying for this loan
Applying for a Low Doc Portfolio Loan can be done online. Before you begin the application process, read through the terms and conditions, particularly information regarding who can apply for the loan to determine your eligibility.
You don't have to complete the application at once; the form allows you to save your application. You can retrieve and complete your application at your convenience.
Documents you need to apply
- BAS statements for the past 12 months
- Loan statements for loans currently being refinanced to a Low Doc Portfolio Loan. These statements need to be for the past six months.
- Statements for loans refinanced by accounts other a Low Doc Portfolio Loan
- ABN or ACN details if applicable