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
A low documentation (or no documentation) mortgage 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 mortgage loan application, or those who wish to borrow more than 100% of the property value.