LouiParticipant@loui80Join Date: 2016Post Count: 13
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.Corey BattParticipant@cjaysaJoin Date: 2012Post 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.Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,018
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 FinanceRCastleParticipant@specialistlendingJoin Date: 2017Post 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’tEthan TimorParticipant@ethantimorJoin Date: 2016Post 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.