Everyone is now aware low doc loans are definitely harder to get than a few years ago. Having said that, as people become used to the new credit environment, we are now seeing customers start to offer BAS statements. This didn’t occur previously.
It seems people are now being conditioned by the banks that more paperwork is required when applying for low doc loans. The normal options are either Accountants letter, BAS statements, or trading statements. This extra paperwork applies to residential property low doc loans which are governed by the NCCP.
In regards to commercial low doc loans, in many cases we don’t require all this extra paperwork. We have recently been offered access to funding large low doc commercial loans with a minimum loan size of $3m. As well as the large low doc commercial loans there is now development finance becoming available for deals that the banks wont do.
As always, if you have a scenario regarding low doc commercial loans please call us.
As well as a lot of news in the media about low doc loans there is also a lot of comment about what is happening to investment property prices. With so much differing comment out there in the news it is difficult to know what is really happening, and where the market is heading.
Would you like a property market update?
Please note this report is free and very detailed. It contains a lot of information.
If you would like a free property market update, then please visit the Investment Property website, fill out the form and you will be emailed a free property market report.
The report contains a snapshot of what is happening in the major cities, house and unit prices, changes in dwelling values, and capital cities capital growth and sales volume.
The report is over 20 pages in length. For full details of what is contained within the report see Investorpac.
LOW DOC Car Loans
Low Doc car Loans for purchases are still available in 2015 as long as the vehicle being purchased is to be used for a commercial, or business purposes.
Low Doc Car Loans with:-
No Tax returns
No Accountants letters
No mortgage insurance
To qualify for low doc car loans you must have an ABN for at least 24 months, and have clean credit. The vehicle must be purchased from a licensed dealer.
For full details and rate see Low Doc car loans
From Jan 1 2011, banks have brought in guidelines to comply with the new National Consumer Credit Protection Act (NCCP). Lenders now require evidence that you are able to repay a loan. This means that low doc loans now generally need, either BAS statements, trading statements or an accountants letter, to show that the customer can service a loan.
Low Doc Loans are not dead! Low doc loans are still available, however, they now require more verification.
With the banks adopting more cautious lending policies it would appear the self employed, as the largest group of low doc loans borrowers, have been the hardest hit by both the GFC and NCCP. As with anything new it will take time to adjust, however, eventually small business owners will adapt to the new credit environment we are in.
Low Doc Construction loans