Another lender tightens the lodoc noose

Viewing 4 posts - 1 through 4 (of 4 total)

Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
September 17, 2009 - 4:30 am
St George Bank have just announced effective from 19 September 2009, all Low Doc Home Loan applications must now be supported by Business Activity Statements (BAS) for the last 12 months, the last statement being no more than 3 months old at the date of application.
This is in addition to existing Low Doc documentation requirements.
For applications received prior to the 19th, these can be assessed under the previous criteria i.e. Business Activity Statements will not need to
be supplied. However, any new applications received from the 19th will require Business Activity Statements to be supplied as a policy
requirement.
Please note that no policy exceptions will be considered – if applicants are unable to provide BAS statements for the last 12 months per this
new policy requirement, then the application cannot be considered as a Low Doc and will be required to be processed as a fully assessed loan
with full financials and income details provided.
Looks like noose is tightening further.
Richard Taylor | Australia's leading private lender
Rudiga
Member
@rudiga
Join Date: 2008
Post Count: 41
September 17, 2009 - 4:54 am
isnt a Low Doc loan for someone who cant provide financials, and cant prove their income to a bank?
i dont really understand. if a person can provide their BAS statements, doesnt that show what their income is?
so why wouldnt the person going for a Low Doc loan, just go for a Full Doc loan?
or am i not getting something?
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
September 17, 2009 - 5:21 am
No it is a way of a lender saying we offer Lodoc but these are our requirements.
Lodoc is for clients who havent got access to their 2 Years Financials.
In saying this of course the lenders attitude is that you would still be completing your Business Activity Statements even if you Tax returns are not upto date.
They are not alone however CBA and a few of the others have had this as a requirement for some time.
Options are diminishing for self employed clients without evidence of Tax returns.
Richard Taylor | Australia's leading private lender
Rudiga
Member
@rudiga
Join Date: 2008
Post Count: 41
September 17, 2009 - 7:14 am
Qlds007 wrote:
In saying this of course the lenders attitude is that you would still be completing your Business Activity Statements even if you Tax returns are not upto date.
that line just pretty much answered my question………thanks