All Topics / Finance / Minimum borrowing with no proof of income?

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  • Profile photo of fxdaemonfxdaemon
    Participant
    @fxdaemon
    Join Date: 2013
    Post Count: 114

    Hi experts

    Have a tenanted IP fully paid off no mortgage and current contract job coming to an end in couple more months.
    I am planning to just borrow the minimum amount against the IP equity as capital to start small business when
    the contract job finishes up. That means I will have absolutely no income to show for.

    Some details on IP:
    – Bank valuation $850K
    – Weekly rent $650/week

    I am looking to borrow $250K ie LVR of just a bit less than 30%.
    Without the contract job income or any other source of income, will it still be possible to borrow that amount?
    If so, what kind of interest rate am I up against?

    Also, don’t currently own any other home and staying with my brother for now and have no other financial commitment.

    Thanks
    FXD

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    You probably won’t be able to borrow without an income other than rent because of the minimum living expenses the lenders will assume.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Yes it is possible as the loan will be in the name of the new business.

    Will be done as a Nodoc loan (No income evidence required) by way of 1RM against the security property.

    Rate will be circa 7.00 -7.75% Per annum.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

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