This loan is suited to investors or self-employed borrowers who do not meet the ‘standard’ lending criteria. This may include those with an impaired credit history, those who are unable to provide the required documentation in support of their loan application, or those who wish to borrow more than 100% of the property value.Rather than produce payslips, tax returns or other proof of income, the lender asks you state your income – a process called self-verification.

Advantages:

• Simple income declaration form.
• No tax returns or financial statements.
• Can have features such as redraw, line of credit, variable or fixed rates, principal and interest or interest only.

Disadvantages:

• Generally a higher interest rate than standard loans.
• You will pay additional fees and charges, including ‘risk fees’.