Low Doc Business Loans may be available for applicants that want to purchase a new business. The low doc loan must be secured against an investment property. If the total lending does not exceed 65% there may be no need for ABN or GST registration as long as applicant has a strong asset position. This type of low doc loan is well suited for applicants in one field of work who wish to buy a small business in another industry e.g a bricklayer who now wants to purchase an established coffee shop.
The security property for the low doc business loan must be in a major metropolitan area.
Low Doc Loans LVR change.
The maximum LVR on Westpac Low Doc Loans will be reduced from 82% to 80%, effective Wednesday 20 January 2010.
This change will also apply to existing customers that have low doc loans that need to be re-originated as a result of a top up.
If a customer pays the mortgage insurance separately (or upfront) the total low doc loan amount will still be 80%
RAMS Low Doc Loans will be a maximum of 80% including mortgage insurance from Thursday 21st January 2010
As a footnote to the above, Westpac and many of the major banks are now requiring BAS statements with their low doc loans. Given this requirement for BAS, is this really a low doc loan? There are still alternative low doc lenders out there at 80% for both purchases and refinances that do not need BAS.