Month: September 2012

Low Doc Loans 70

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A Low Doc Loan with a maximum LVR of 70% and NO Lenders mortgage insurance and a cheap interest rate.

Low doc Loans requirements

  • Minimum – 24 months trading
  • Minimum – 24 months Business registration
  • Minimum – 24 months registration for BAS

What documents do you need to provide for this low doc loan?

  • A signed 12 months Profit and Loss account done via the Management Accounts of the Business (MYOB – does not need to be signed by an Accountant), and this can be done for any 12 month period (but no older than 6 months old)
  • BAS for the same 12 month period, this is used to confirm sales in the Profit and Loss etc.
  • Any other income sources (spouses PAYG, rental statements etc).
  • The last date of the Profit and Loss can not be more than 6 months old.  If this is the case will also require BAS to bring us up to date from the last date of the P&L.

How is serviceability calculated for this low doc loan?

  1. Total Net Profit shown in the profit and loss account, plus
  2. Add backs if any (interest on accounts being refinanced etc) shown in the Profit and Loss, plus
  3. Wages from the Group Certificate, plus
  4. Any other income

What do you get?

  • Up to 70% LVR against any residential property with no maximum amount loan size
  • Can be used for any purpose – purchases, refinances, debt consolidation and cash out (cash out max is $1.0m)
  • Products include Variable, Fixed Rates or Professional Package
  • NO Lenders Mortgage Insurance
  • A low doc loan at a cheap interest rate

It is important to note The Profit and Loss does not have to coincide with a financial year.   Just require a 12 month profit and loss for any 12 month period

Here is a low doc loans example:-

Business commences just over two years ago.  For the first full financial year, business was in a start up phase and made a loss. This is normal  For the last 12 months, business has gone strongly.  Under this product there is not an averaging of figures, we are taking the latter profit figures produced.  You can supply a signed Profit and Loss for the last 12 months (where you will be showing the majority profit) plus BAS for the same period + any other income.

All the above is a guide only. All low doc loans are subject to a lenders credit criteria.

Need more help call us on 1300 LOW DOC