Hi,
I am currently in the process of doing a property development and have done one previously having to use low doc and no doc loans because I am a self employed electrician and the banks dont like this. I earn decent money but obviously my accountant works his magic and taxable income never looks that great!
My finance broker has now said everything has changed in the finance industry and low docs and no docs are nearly impossible to get?
I have bought the property using a Bank West easy doc product and was told i could extend this for construction costs but now apparently things have changed? Is this true or am I just getting put in the too hard basket?
Does anyone know of some low doc or no doc products that are still available or any other viable options such as private financing, I am located in Adelaide?
Thanks and any advice would be greatly appreciated!
Cam
No doc loan- are fading out for sure…i only know of one small lender that still offer this- but most likely wont be for long.
Low- doc- It’s still around i can guarantee you that! – however it’s slightly different and the bank do ask for different paper work + LVR is much lower, which bank…out of 42 that i deal with 15-16 of them still offer low doc to a certain level…so it depends on what your situation is like; because if one bank dont like your deal..another one will.
To date, i haven’t had any major issue with low-doc… beside low-doc refinance which is a real pain in the ass.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
*** bank-west is def not a low doc provider i would consider for construction…as a matter of fact Bank west is not one i would recommend for standard full doc construction ( unless ur a existing client) ….let alone a low-doc loan.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Thanks mate.
Yeah he was saying I will have to provide 4 BAS statements then they take 60% value of the average of the 4 or something along those lines?
Bank west not a good option for construction? Are they hard to deal with or just dont like there product?
Ohhh god 4 BAS???! geee that reminds me now why i dont recommend Bank-west’s Lo-doc product
Bankwest is not great for construction because they dont provide a lot of flexability; it’s their way or NO way!
1. 60% LVR for low doc construction is pretty standard- with the well known banks anyway.
2. If your after a 70-80% LVR…then there will be insurance involved + the rate will go up.
3. You can swap from low-doc to full doc after 6 month..and get placed on cheaper rate etc…
4. There are a few lenders that will do 60-80% LVR with either of these combinationA) 1 BAS + 1 accountant letter
1 BAS + 6 month trading statement
c) 3 month trading statement + account letter
d) Accounts letter only( LVR max at 60%)Of course they are all different lenders…it just depends what suits you the most/ or which would get you OVER THE LINE.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Cam as Michael has mentioned Lodoc is indeed alive and well post NCCP.
Difference is now you Broker has to make reasonable efforts to ensure that the loan can be supported by obtaining Bank statements, Accountants confirmation, BAS or other forms of evidence so he is fully complying with the terms of the legislation and repsonsible lending in general. This can be over and above anything the actual lender may ask for.
If the loan is done in your personal name even private lenders fall under the same legislation.
Like anything there are many ways to skin a can.
Just had a small development of 6 units approved only yesterday on Lodoc at $1M + so they are still around.
Bank West is not one of the lenders who will do it.
Refinance is of course a slightly difference story.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Qlds007 wrote:Just had a small development of 6 units approved only yesterday on Lodoc at $1M + so they are still around.Hey Richard,
Care to share which lender?
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MeRichard?
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone Mebank-west is a low doc provider
1 BAS + 6 month trading statement
You must be logged in to reply to this topic. If you don't have an account, you can register here.
