All Topics / Finance / Is this a Low Doc request or not?

Viewing 5 posts - 1 through 5 (of 5 total)
  • Profile photo of LouiLoui
    Join Date: 2016
    Post Count: 13

    Hi guys,

    My sister and bro in law have a low Doc loan with Wbc for 300k on a property worth 1.0m. No other debts. They need 100k cash out to pay my parents for monies owed for the reno they did. My sister now works as a teacher earning 50k gross plus they have a rental property they get 12k in income a year. They have 2 kids. Unfortunately my sisters income alone cannot service the debt and all other expenses and my bro in law can make up the shortfall as he makes about 30k a year on a part time basis for his business. This would get it over the servicing shortfall I believe but problem is he is not registered for gst and does not lodge bas statements. What lenders can look at this? It is a no risk deal with such a low lvr but I know major banks will cause them grief due to the gst issue and responsible lending piece. Have not approached current lender yet but I would not hold my breath. Any help would be appreciated.

    Profile photo of Corey BattCorey Batt
    Join Date: 2012
    Post Count: 1,010

    If he legitimately makes $30k/yr net profit before tax in the business and have tax returns showing him receive this consistently, they may be eligible for a full doc loan. BAS/GST registration is not a requirement of full doc loans, unless they’re claiming they’re earning above the GST threshold but not registered. ;)

    Best they speak with a broker who is used to dealing with self employed clients and they can run through the exact options for them – it sounds like a nice simple one.

    Corey Batt | Precision Funding
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    Investment Focused Finance Strategist - servicing Australia-wide

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

    Sounds like a fairly straight forward deal given the income is declared net profit.

    Remember GST has nothing to do with earnings but more to do with turnover.


    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
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    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of RCastleRCastle
    Join Date: 2017
    Post Count: 1

    When it comes to these sort of specialist circumstances, I always point towards education. Inevitably your broker will be the guiding light, but it helps to understand the types of specialist loans out there and what they mean.

    RCastle | Fortress Funding

    Help when the banks won’t

    Profile photo of Ethan TimorEthan Timor
    Join Date: 2016
    Post Count: 282

    Lenders will look at your brother in law tax returns. If the numbers work, there shouldn’t be an issue.

    Suggest having a preliminary discussion with a broker to get specific advice.


    Ethan Timor | Aligned Finance Pty Ltd
    Email Me | Phone Me

    Active Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)

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