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
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 MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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 | Australia's leading private lender
thanks for that … what sort of information would a lender normally require to complete an application?
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 | Australia's leading private lender
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 MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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 | Australia's leading private lender
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?
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 | Australia's leading private lender
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