How does a no doc loan work?

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Otto Dargan
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Re: How does a no doc loan work?

Post by Otto Dargan »

Hi and welcome to the forums hitman.

A no doc commercial loan primarily relies on the value and saleability of the security rather than the strength of your personal situation.

You may not be required to provide supporting documents such as tax returns, business activity statements (BAS), or an accountant’s letter.

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 may also need to sign a declaration form confirming that you are aware of the repayments and can afford them.

It should be noted that you may use the funds from the loan for commercial property investment purposes, investment in shares, or for other business purposes like day to day transactions. You may not be able to use the funds for personal purposes or to buy residential investment properties.

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

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How does a no doc loan work?

Post by Otto Dargan »

Hi hitman,

Lenders consider no doc commercial loans far more riskier than normal home loans. Therefore, the interest rates for this type of loan may be four to five percent higher than the interest rate for a normal home loan.

The interest rates may vary depending upon 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.

It should be noted that since these loans are not regulated under National Consumer Credit Protection Act (NCCP), lenders may charge you exit fees if you refinance or repay the loan earlier than the end of the loan term.

It is recommended that you talk to a specialist mortgage broker to help you formulate a proper exit strategy to repay the loan.

You can go through our website to find out more about no doc commercial loans. If you want help in finding a suitable for lender, you can give us a call on 1300 889 743 or fill in our free assessment form.

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

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How does a no doc loan work?

Post by Otto Dargan »

Hello bond,

Lenders may accept only some properties as security, such as:
  • 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. A property at a remote location, a residentially zoned property, or a property that is occupied by your business may not be accepted.

You can go through our website to find out more.

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

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