What are Low Doc Loans?
Low doc loans are generally for self employed customers who are not able to supply full financial documents.
Low Doc Home Loans
Low Doc Loans for home loan customers must comply with NCCP regulations. For these low doc loans the borrower must show some sort of evidence they are able to service the loan they have. This may take the form of either an accountants letter, BAS statements or bank trading statements showing the level of income going through the trading account.
Low Doc Commercial Loans
Low Doc Commercial loans are treated differently to home loans. With commercial loans the requirements are not quite as stringent as low doc loans. For commercial property loans there are two different types of lending in Australia.
Low Doc Commercial property loans. This is where an income is declared and may be supported by either:-
- Last BAS only and clean tax portal (up to 80% LVR)
- Bank trading statements (Up to 75%)
- Accountants letter (Up to 70%) The accountants verification will support the income that is declared in the application.
Note, with all the above low doc commercial property options tax returns and company financials are not required.
No Doc Commercial Loans. For these No Doc commercial loans there is no income declaration or accountants letter required. Evidence of being able to service the loan is shown through one of two ways. The first method is where there is s lease is in place for a minimum of two years and this lease is able to cover the commercial loan repayments. The second method is where the customer has a strong net position and is able to show that all their current loans have been paid on time.
These No Doc Doc commercial loans are only available in major metropolitan areas.
Having said that, it may be possible to do specialised securities in regional areas through out Australia on very low loan to value ratios.