Brokers heading back to low-doc

by Adam Smith20 Mar 2013


A mortgage manager has slashed rates following what it says is a resurgence in low-doc lending.
An ASIC review recently found a significant reduction in brokers suggesting low-doc loans to clients. But Better Mortgage Management director Murray Cowan said brokers are coming back around to the products.
"We have definitely noticed more brokers looking at low-doc lending again following a period of uncertainty following the introduction of the NCCP Act in 2010," Cowan said.
Cowan said brokers were continuing to recognise that low-doc lending is acceptable under NCCP, and argued that brokers avoiding specialist loans could be costing themselves business.
"Low-doc lending is different to years gone by and Brokers do have to do more legwork, but it is a legitimate form of lending and brokers wouldn’t be providing a full service to their clients if they didn’t consider all options," he said.
The mortgage manager has responded to the apparent up-tick by cutting up to 20bps from its Capital Specialist suite of loans. BMM said it would also now allow unlimited cash out on vacant land and accept more regional locations. It will also no longer require GST registration for income below $75,000.