Private Lending – Low Doc Loans

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Private Lending – Low Doc Loans

Low Doc Loans (Low documentation loans) are designed for these self-employed people who do not have up to date financial statements and tax returns which are required for a prime mortgage. These types of mortgages are long term compared to no doc loans and need to meet servicing requirements set out under ASIC requirements as they are coded loans (Residential Owner Occupied or Investment Property).

Generally the same features and facilities are available on prime loan are also available on a Low Doc Home Loan as the name indicates the difference is in the documentation. If you are self-employed or have a small business and can’t provide lodged returns then it is the way to apply for a home loan.

Although financial statements and tax returns are not required for these loans, lenders will require some form of proof that you can service these loans. For these low doc loans, you may need to provide the lender with a statement confirming your income generally certified by your accountant or Business Bank Statements or BAS Statements or a combination of above.

Specifications on Low Doc Loans

Applicant type Companies, Trusts, Individuals
Location Capital City and Major Regional Population Areas over 10,000 population.
Income: required proofs Self Declaration of Income plus one of the below documents to support your declaration:

  • An Accountants Letter verifying your income.
  • 6 months of Lodged BAS Statements from the ATO Portal.
  • 6 months of Business Bank Statements.
Loan amounts
  1. $1,000,000 between 80% > 85% of Property Value.
  2. $2,000,000 between 75% > 80% of Property Value.
  3. $5,000,000 to 75% of Property Value (case by case and subject to location – must have clear credit files)
Purpose The purpose of the loan is regulated under the National Consumer Credit Protection Act (NCCP)
LVR High LVR’s of 85% are only available in high population areas (Capital Cities or Major Regional Cities and Towns).  You can have lower loan values in regional areas and for vacant land.
Acceptable securities Residential, Commercial Property and Vacant Land.
Credit related issues Considered case by case
Variable, fixed or bothVariable Variable
Minimum Requirements Length of ABN / GST registration: You need to have an ABN that has been registered.  GST registered is required if sales are over $75,000. Most Lenders require ABN to be registered for at least 12 months. We have lenders who may accept an ABN registered only 3 months old.
Loan Term > 30 years (for Short Term Loans visit this page)
Establishment Fee TBA (depending on lender)
Brokers Fee Yes
Lenders Legals At Cost
Valuations At Cost