Can I get a no doc commercial loan?

Share your concerns & ideas about commercial property loans in Australia.
ladygaga
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Joined: Thu Mar 12, 2015 5:37 pm

Can I get a no doc commercial loan?

Postby ladygaga » Tue Apr 21, 2015 5:31 pm

Hi home loan experts,

I graduated last December and I’ve been planning to establish a business of my own. I’ve always wanted to do that. I need a property to start off my venture. I’ve even found a suitable property a few minutes away from my home.

A few friends suggested that I can get a no doc commercial loan to purchase the property. None of them seemed to know much about it though so I wanted to talk to somebody with professional expertise.

I’d bumped into this forum a few weeks back when I was researching commercial property loans. It seemed very useful so here I am again.

Can anyone please help me out and explain whether or not I can get a commercial loan?

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Otto Dargan
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Re: Can I get a no doc commercial loan?

Postby Otto Dargan » Wed Apr 22, 2015 9:31 am

Hi and welcome to the forums ladygaga.

You may qualify for a no doc commercial loan if you want to purchase :
  • Properties in capital cities and major regional locations.
  • Unspecialised properties such as offices, factories, warehouses, and retail properties.
  • Commercial, industrial, or mixed-use zoning properties.
  • Investment properties with a current lease in place.
It should be noted that a property must be readily saleable and in a good condition to be accepted as security for a commercial loan.

It should also be noted that the lenders may not accept your loan application if you want to purchase:
  • Properties in remote locations.
  • Specialised properties such as hotels, petrol stations, and day care centres.
  • Residentially zoned properties.
  • Properties in a poor condition.
If you want to take out a loan to purchase a property that is occupied by your business, then the lender may decide whether or not to lend to you only after evaluating your case.

Does the property you are looking into fall under any of the above categories?

Cheers,
Otto
Otto Dargan
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P | 1300 889 743
Home Loan Experts

ladygaga
Posts: 9
Joined: Thu Mar 12, 2015 5:37 pm

Re: Can I get a no doc commercial loan?

Postby ladygaga » Thu Apr 23, 2015 5:55 pm

Yes, it falls under unspecialised properties because I basically need an office type of space where I can set up my business. It’s located centrally in Perth.

I’ve heard that lenders ask for several documents before approving a loan application. What documents would I exactly need?

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Otto Dargan
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Re: Can I get a no doc commercial loan?

Postby Otto Dargan » Fri Apr 24, 2015 2:11 pm

Hi ladygaga,

Here is a list of documents that you may need to qualify for a no doc commercial loan:
  • Statements for your existing commercial loan.
  • Evidence of your deposit.
  • Documents of the lease for the property.
  • A declaration form confirming that you are aware of the repayments of the loan and can afford them.
You can use our Loan Repayment Calculator to find out the amount of your periodic repayments.

It should be noted that you may not need to provide evidence of your income. However, if you can provide it, then you may qualify for a more attractive interest rate.

If you want to know more about no doc commercial loans, then you can check out our website. We can be reached on 1300 889 743 if you want to speak to one of our brokers directly. You can also fill in our free assessment form and one of our brokers will contact you instead.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

ladygaga
Posts: 9
Joined: Thu Mar 12, 2015 5:37 pm

Re: Can I get a no doc commercial loan?

Postby ladygaga » Fri Apr 24, 2015 5:59 pm

Thanks, Otto. I really appreciate you taking out the time to answer my questions. I’m so glad I bumped into this forum.

I’ll definitely give you a call within the next week because I think I’m ready to go ahead with the application process now. I’ll need your help though. Have a good weekend! :)

aussie
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Joined: Thu Mar 12, 2015 5:45 pm

Re: Can I get a no doc commercial loan?

Postby aussie » Mon May 18, 2015 7:31 am

Hey there, good morning to everyone!

I’m about to finish my architecture degree and I want to immediately start my own firm after I graduate. I was going through this thread and I learnt a lot about no doc commercial loans.

I have one question though. I’ve heard that no doc commercial loans are significantly costlier than normal home loans. Is it true?

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Otto Dargan
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Can I get a no doc commercial loan?

Postby Otto Dargan » Mon May 18, 2015 11:45 am

Hi aussie,

For a no doc commercial loan, you may have to pay an interest rate that is three to four percent higher than a normal home loan. This is because lenders are taking a high risk by lending to a borrower without income evidence or a certainty of a stable financial situation.

It should be noted that no doc commercial loans are not regulated by the National Consumer Credit Protection (NCCP) act. Due to this reason, lenders may charge you certain fees if you decide to switch the lender or pay off the loan before the loan term ends.

This may not apply to all lenders. You can go through our website to find out more.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

aussie
Posts: 8
Joined: Thu Mar 12, 2015 5:45 pm

Re: Can I get a no doc commercial loan?

Postby aussie » Mon May 18, 2015 4:52 pm

Thanks for such a prompt reply, mate! I’ll keep in touch through your website and this forum. I’ll give you a call after I’m ready to start my own firm. Cheers!


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