Low doc cash out to expand my business

[Carson]

Hi there, I’m looking to access the equity in my house to purchase a second warehouse and a load bearing truck. The house is valued at $645,000 with a $170,000 mortgage and a business loan of $80,000 secured on the house. I’ve been running the business for the last 12 years and I’m now looking to expand. I do not have the necessary documentation for a standard cashout refinance. I’m looking to access $235,000 to expand my business. Can you guys help?

[Otto Dargan]

Hello Carson. Welcome to the forums.

Lending guidelines for low doc loans can vary between lenders however, we can usually help you refinance your existing loan if you are in the following situation:

• You’re borrowing no more than 80% of the property value.
• Your credit history is clear (some exceptions).
• You have been making regular repayments for the last six months (some exceptions).
• You must have an ABN.
• If you’re releasing equity then you need to provide evidence of the purpose of your loan.
• You must either provide BAS statements, an accountant’s letter or business bank statements to verify your income.
• Borrowing money for business, investment or personal purposes is accepted.

A low doc cash-out refinance could be a suitable option with the right lender. However, keep in mind that refinances are considered by lenders to be a higher risk than loans used to purchase a property.

Speak with one of our experienced mortgage brokers by giving us a call on 1300 889 743 or by filling in our free assessment form to find out if you qualify for a low doc refinance loan.

Cheers,

[Carson]

The main issue is my tax returns are outdated showing a taxable income of $89,000 and $62,000 respectively. I lodge BAS via my accountant each quarter however, I do not have my most recent financials completed but my profit has increased substantially to 200k p.a. How do I prove my income as 200k?

[Otto Dargan]

Hi Carson,

If you can provide us with your last 12 months BAS and an accountant’s letter declaring your said income of 200k, we may be able to help you get approved for a low doc refinance with a suitable lender from our panel of almost 40 lenders.

Each lender has different requirements and will accept different document types to prove your income.

The main documents that can be used to prove or verify your income are:

• 12 months’ BAS statements showing a high turnover.
• An accountant’s letter verifying your income.
• Business bank statements showing a high turnover.
• Old tax returns (over 24 months).
• Interim financial statements.

Cheers,

[Carson]

That sounds promising. Currently, I’m paying a significantly higher interest rate on the 80k business loan that’s secured on my property. Could I also roll that into the home loan?

[Otto Dargan]

Hi Carson,

Yes, it is possible to consolidate your debts into your mortgage as you have enough equity in your property to do so. However, only a few lenders will allow this. When consolidating debts, the lenders will want to see your current loan statements to ensure your loans have been paid on time.

You can also check out our low doc interest rates webpage to compare rates and start saving.

Give us a call on 1300 889 743 or fill in our free assessment form to get the most competitive interest rates available for a low doc mortgage.

Cheers,