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Loans for Self Employed- Low doc , No Doc, Lease Doc and Full doc

 

Running a business is not easy; to be able to provide consistent tax return every year can be near impossible for a lot of business in this current market, especially if your accountant has utilize some legit tax minimization strategies. We understand this and this is where a understanding and creative mortgage brokers like us can help!

 

We are accredited with over 47 Low-doc and full doc products in Australia and overseas- Let us help you match your business and personal needs to the correct one!!Self employed Loc doc loans

 

1. Full doc loans for self employed

2. Low doc loans for self employed

3. Lease doc loans - Commercial properties

4. True No doc Loans - Commercial and residential investment 

 

Self employed - Full docs loans

 

Full doc specifications

Max LVR 99.9% ( 95% + LMI)
Indicative interest rate 3.74% - 4.29% Variable ( as of July 2016)
Min ABN period 24 month
Required Documentations 2 years tax returns
12 month BAS/GST **
 
LMI Payable once loan is over 80% LVR
No LMI Available up to 85% 
Discounted LMI up to 95% LVR
Pro Discounted interest rate
High LVR
Discount on LMI
Fast approval - 24 hours turn around available
Con 2 years tax return required
Case study - Nov 2009 


Mr Wu and Mrs Bensen runs a local coffee shop and have been in operation for 3 years, under a partnership structure. They made a net profit of $82,000 in 2008 and $69,000 in 2009,  They approached CBA to apply for their first home loan of $523,000.

Loan: $523,000
LVR: 90%

CBA : Rejected due to serviceability - ie could not afford the loan according to the branch staff.

Shape Home Loans Result- CBA: Using the same file we were able to get the loan approve with CBA, as we were able to break down the tax return from an "accountants" point of view and we were able to add back some "expenses" back into the income instead of just looking at the end "Net profit".

 

Some common "add backs"  expenses that can be included back into the income( depends on the lender and industry)

  • Deprecation
  • Interest ( refinance)
  • Directors salary
  • Superannuation above the minimum 9%
  • Unordinary repair or maintenance cost
  • Once off purchases/expenses


Results: Loan unconditionally approved within 4 working days.



 

 

Self employed/Contractors( with ABN) - Low Doc loans

 

Low doc specifications 

Max LVR Generally 80%- can go up to 90% on a case by case basis ( rates from 7.60% for  > 80% LVR)
Indicative interest rate 4.79% -7.10% Variable ( as of July 2015)  
Min ABN period Normally 12 -24 month ( less than 12 month is acceptable for some industry)  
Required Documentations

 

12 month BAS statements 


OR


6- 12 month trading company bank statements


OR

 

Accountants letter only
 

LMI Payable once loan is over 60% LVR
Some lenders will waive the LMI requirement and instead charge a once off Risk fee. 
 
Pro

Flexiabile range of documentation can be used to show income
 

Does not need to fit the LMI policy- Risk fee
Ability to swap to a full doc loan and rate once 2 years tax return can be provided
 

Con LVR is reduced and rates depends on LVR
Rates dependent on LVR and documentations provided
Rates are generally higher then standard rates, once LVR is over 60%

Case study

 

- January 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Feb 2012 


The male applicant runs the local news agency, the female applicant helps out sometimes but is primarily a stay at home mum and take care of their 2 young kids; they own 2 properties that have gone up in value, they want to releases some equity to pay down some business debt, credit card debt, for business cash flow and to obtain some funds as a deposit toward their dream home.

 

Due to the nature of their cash business, they were not able to provide 2 years suitable tax returns or BAS.

 

Property value: $790,000

Current Loan: $450,000 with CBA

LVR: 56%

Require: $160,000 cash to fund business, pay down some debt and for deposit towards next property

 

Shape Home Loans results- Redzed loans: Loan of $450,000 refinanced with $182,000 cash provided on settlement- enough to fund business, pay down some debt and for deposit towards next property. All done with an accountants letter to confirm the income. Rate of 7.39% Variable on a 80% Lend with cash out.

 

New property was funded with Perpetual financial, at an interest rate of 5.39% fixed for 3 years on an 80% LVR lend.

 

Results: Loan went unconditional after 2 weeks.

 

 

 

 

 

 

Mr Jason Bucker use to work for Telstra as a project manager on a salary package of $110,000 PA , however 1 year ago an opportunity came up with his recruiter which allowed Jason to become a contractor in the same role working for Telstra and doing another side jobs, earning $160,000 PA in total also utilizing the expert advice of his accountant he set up a company for this contracting role.

Jason made an offer to buy his first Investment property using his family trust.

Loan: $325,000
LVR: 75%

ING, NAB and Westpac- All three banks rejected his loan due to lack of documentation, inconsistent income, LVR over 60% and also ABN has been active for less then 2 years. 

Shape Home Loans Result- Challenger Financial: With a bit of creativity and risk migration tactics we presented the file to challenger; providing 3 month trading statements and a letter from Jason's accountant to confirm his $160,000 income we were able to get this loan approved with no LMI ( risk fee applies).

Results: Loan accepted within 7 working days.

 

 

 

 

 

Lease Doc loans - Commercial

 

A hassle free loan for PAYG or self employer who's purchasing an commercial property; there's no need to provide any documentation to prove your income if the rental income is sufficient to service the loan. 

 

No doc specifications 

Max LVR 60%
Indicative interest rate 6.90%-7.50%  (as of July 2016)
Min ABN period PAYG or Self employed with 2 years ABN
Required Documentations

Standard ID and tenancy agreement to show rental income.

LMI No LMI; Max LVR is 60% 
Pro

No documentations required for income

Quick and dependent on the rental income only.
 

Con

Commerical properties

No construction
Low LVR

Must have a perfect credit file

Term of the loans depends on the tenancy agreement term/period.

 

Case study - Nov 2011


A local and thriving Consultancy firm had plans on purchasing the office next door as it provided good rental yield of 8% net and the company wanted some solid asset on it's books; for simplicity they wanted a hassle free No doc loans where they don't need to provide any tax returns.

The company approached us as first contact.


Loan: $580,000
LVR: 60%
 
Shape Home Loans Result- Private lender: With a bit of risk migration and ability for the property to service it's own debt from rent alone we were able to source a reasonable loan that benefited our client.

Results: Loan accepted within 24 hours pending valuation value.

Rate: 6.90% Variable with no break fee with a well known bank.

 

 

 

 

No Doc loans - Commercial 

 

A true no doc loans for self employer who's purchasing an commercial property; there's no need to provide any documentation to prove your income- Just a personal stationary declaration.

 

No doc specifications 

Max LVR 50%
Indicative interest rate From 9.80%  (as of July 2016) - Depends on security and customer type. 
Min ABN period PAYG or Self employed with 2 years ABN
Required Documentations

Standard ID, Sale contract and Personal Statutory declaration on income 

LMI No LMI; Max LVR is 50% 
Pro

Personal Stack declaration to show income only

 

Con

Commerical properties

No construction 
Low LVR
Higher interest rate loading
Short term loans 

Must have a perfect credit file

Exit cost of up to 2% of the loan amount 

 

Case study - Nov 2011

Client runs a profitable small business and been trading for the last 4 years, however due to the nature of the business his not able to produce any tax returns or any paper work to show his income, client was keen to buy a investment property.

 

Loan: $422,000

LVR: 50%

Shape home loans result: Private lender: Provided a personal statutory declaration, credit history was perfect and current liabilites were fine- Loan went conditional, pending valuation after 2 weeks.

 

                        


 

 

 

 

 


ABN 57 142 142 407 |   Australian Credit Licence 390573  |   MFAA Approved Broker 58602  |  COSL Member M0004711