Did you know that you can buy or refinance a commercial property without providing any income evidence?

There are fewer regulations for commercial loans which means the banks are not required by law to verify your income. This allows people with a complex or outside of the box situation to invest in commercial property without any hassles.

How much can I borrow?

So how much can you borrow without proving your income?

  • You can borrow up to 65% of the property value.
  • No income evidence is required.
  • Investment properties are preferred.
  • Offices, warehouses, factories or retail properties in capital cities are preferred.
  • You may qualify even if you have a bad credit history.

Speak to our mortgage brokers by calling 1300 889 743 or fill in our free assessment form to find out if you qualify for a no doc commercial loan.

How does a no doc commercial loan work?

This type of loan is known as an asset lend because the lender is primarily relying on the value and saleability of the security rather than the strength of your personal situation.

You will need to sign a declaration confirming that you are aware of the repayments and can afford them. You are not normally required to state your income but if you can then you may qualify for a more attractive interest rate.

You are not normally required to provide supporting documents such as tax returns, business activity statements (BAS), an accountant’s letter or business bank statements. You may still need to provide other documents such as statements for your existing commercial loan, evidence of your deposit or the particulars of the lease for the property.

You can use the funds from the loan for commercial property investment purposes, investment in shares or for business purposes including working capital.

You cannot use the funds for personal purposes or to buy residential investment properties because the loan would then be regulated under the National Consumer Credit Protection Act (NCCP). If the loan is regulated then the lender must verify your income.

Does my credit history matter?

Some lenders will investigate your credit history while others will not. As a general rule, if you have a better credit history then you can obtain a better interest rate from a mainstream lender.

Is my property acceptable security?

No doc commercial loans are only available for prime security properties. Acceptable properties include:

  • Capital cities and major regional locations.
  • Unspecialised properties such as offices, factories, warehouses and retail properties.
  • Commercial, industrial or mixed-use zoning.
  • Investment properties with a current lease in place are preferred.
  • Readily saleable and in a good condition.

Unacceptable properties include:

  • Remote locations.
  • Specialised properties such as hotels, petrol stations and day care centres.
  • Residentially zoned properties
  • Properties that are occupied by your business (case by case).
  • Properties in a poor condition.

Not sure whether your property will be accepted as security for a loan? Call us on 1300 889 743 or fill in our free assessment form to find out if you qualify for a commercial no doc loan.

Loan term

Most no doc loans with a private lender have a short term of 6 months to 12 months whereas with larger specialist lenders most terms are for 1 to 5 years. A couple of our lenders can consider terms of 15 to 25 years.

You can often rollover your loan at the end of the term which is where the lender re-approves your loan and extends the term subject to their credit criteria, fees and charges.

There are no annual reviews for no doc loans.

Commercial no doc interest rates

No doc commercial loans are typically 3-4% higher than what we can obtain through our most competitive lenders.

The pricing is variable based on the lenders that you qualify with, your credit history, the percentage of the property value that you borrow and the overall risk of your application.

Which lenders can help?

Specialist lenders such as non-bank and private lenders provide the majority of no doc loans.

In some cases, we are able to provide some form of limited income evidence to a major bank to get a lower priced loan, even though the customer thought that they could only qualify for a no doc loan.

Be careful of exit fees

Commercial loans are not regulated under the NCCP act so there is very little consumer protection for you as a borrower. Lenders are permitted to charge exit fees and in many cases these can be extortionate.

We recommend that you work with our mortgage brokers to formalise an exit strategy to repay or refinance the loan at the end of the term. Always ask a lender what the exit fees are when seeking a quote for a no doc loan.

Apply for a no doc commercial loan

Do you need help to apply for a no doc loan on your commercial property?

Call us on 1300 889 743 or fill in our free assessment form and we’ll get back to you with a quote for a no doc loan.

  • Bobby Doo

    My deposit is vendor contributed at nil interest and in return he gets to occupy part of the building. The loan I am seeking is my first mortgage and it covers stamp duty and some fitout for a commercial gym. The purchase price is $1.25m and I’m seeking $800k. Is this feasible?

  • Hi Bobby,

    It’s an unusual transaction in that the deposit doesn’t come from you and the vendor has a leaseback arrangement. I expect most lenders will want to see that you have some skin in the game in the form of cash or other property as security. Also, we’d need more details about if the gym is your gym or if this is rented to someone else. A no doc typically must be max 65% LVR and a standard transaction (i.e. arms length). Call us on 1300 889 743 and ask for a commercial broker and we can go through this in more detail.

  • Sammie

    Hey, I’m looking to buy a commercial property in Australia for $9.3m and want to borrow $4m. I’m an investor from overseas, based in China and I have a significant investor visa subclass 888 and substantial funds. Can you lend to foreign investors?

  • Hello Sammie,

    Yes, we can lend to foreign investors for commercial real estate. It may or may not be on a no doc basis. We can definitely do a low doc loan (limited income verification), however, the size of your loan may mean that a no doc is off the cards. Please complete our online enquiry form and we’ll let you know what options are available. In your comments, let us know what type of property it is, e.g. supermarket, retail, shopping centre, factory etc.

  • Wilie

    Pretty simple one for you, just want to buy a factory in Marrickville NSW for $1.6 – $1.8m. I can put in a large deposit but I’d prefer to keep it as small as possible. Property is currently vacant but I will rent it out to my brother’s company. The property will be held by an investment trust. Can a trust do a no doc loan?

  • Hey Wilie, yes this is all fine. We can lend 65% as a no doc or we could lend more as a full doc / no doc by using the proposed lease as evidence of a capacity to repay the loan. Either way, you should get a great interest rate. It’s mostly an asset lend as a no doc so if you don’t mind putting in 45% as a deposit then it’s a deal.

  • Russell

    I am thinking of buying a commercial office so can you tell me how important is the location of the property in the banks’ assessment?

  • Hi Russell,

    When the valuer checks the property, location is a key factor in working out whether the property will appeal to wide market should the property need to be sold in the event of default. Offices close to or nearby CBD locations have a higher chance of being approved because they tend to be close to transport links and other infrastructure like adequate parking. These attributes are highly sought after by investors and business owners alike.

  • Moore

    The property I want to buy is a showroom but certain renos have been made to the property and it’s a bit unique now. Can this be accepted?

  • Hi Moore,
    This depends on how marketable the property is now. If it’s marketable just like a regular showroom then it should be okay. However, if it’s a bit too unique, it means there will be fewer people interested and the bank will treat it like a specialised commercial property and decline the loan.