All Topics / Finance / Low Doc Lending

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  • Profile photo of jazamitejazamite
    Member
    @jazamite
    Join Date: 2008
    Post Count: 34

    what is the maximum leverage one can go to on low doc lending and what is the process and required information to complete such an application .. thanks

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

    80% is the max LVR these days. You will need an ABN for 2 years and GST registration. Will also need clean credit. Other than that it is the same as applying for a normal loan.

    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

    As Terry has mentioned 80% is max LVR these days and for the better interest rate you will need 2 years ABN registration +

    In saying that if you dont mind paying for it then 12 months registration will still get you over the line with a couple of non bank lenders.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    0-40 Properties in a decade with an unencumbered value of over $35M. Email for a copy of my API article

    Profile photo of jazamitejazamite
    Member
    @jazamite
    Join Date: 2008
    Post Count: 34

    thanks for that … what sort of information would a lender normally require to complete an application?

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

    Hi Jas

    Obviously all of the personal information regarding names, address, dates of birth etc and then a break up of your assets and liabilities.

    Either merely a Stated Income or Affordability Statement in relation to the income evidence part.

    If it is a refinance evidence of satisfactory loan history with your current lender or evidence of deposit if a purchase.
    There are couple of other pieces of documentation normaly required depending on the lender.

    Each lender has slightly different requirements when it comes to lodoc so difficult to tell you exactly without knowing what you are trying to achieve.

    Also interest rates and terms and conditions vary considerably so need to shop around.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    0-40 Properties in a decade with an unencumbered value of over $35M. Email for a copy of my API article

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

    Low Doc loans require all the same information as a normal loan – the only difference is they don't need to see proof of income.

    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

    Interesting amendment to lodoc lending from QBE PMI that they have now refused to provide cover on any future lodoc refinance an action which is certainly likely to have an effect on future deals.

    Purchases are still ok but refnances are out.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    0-40 Properties in a decade with an unencumbered value of over $35M. Email for a copy of my API article

    Profile photo of Hybrid2007Hybrid2007
    Member
    @hybrid2007
    Join Date: 2007
    Post Count: 67

    Richard, does this mean no refinance of traditional loan to lo doc product or no refinance of lo doc to lo doc? What if you want to access equity in an existing trad. loan to purchase another investment/s all under new lo doc loan?

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

    Hybrid

    In a nutshell if you are looking to refinance an existing loan (either to get a better interest rate or to take out some cash) then good luck.

    Neither of the main mortgage insurers will allow a refinance under lodoc so you are basically limited to a 60% LVR which is really practical or a minow lender who will go to 80%.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    0-40 Properties in a decade with an unencumbered value of over $35M. Email for a copy of my API article

Viewing 9 posts - 1 through 9 (of 9 total)

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