Low Doc Commercial Property Loans Overview

What do Low Doc commercial lenders look for?   With Low Doc Commercial property loans, as well as sound commercial security, lenders need to know the borrower can afford to pay the loan. For this reason they focus on the  income, through the

Last BAS Return  looking at how much sales have been for the last quarter. or

Last 4 BAS Returns  they look at how much sales have been for the last year. or

Accountants Declaration  to verify income.

Loan size   Minimum loan size is $300,000.  Most Low Doc commercial finance is done up to $1m.  However there is no maximum loan size.

Term   From 1 year to 30 years. For Low Doc commercial property loans the lenders are looking at the income streams. Normally owner occupied commercial loans are done for a longer term.

  • LVR 
  • 80% up to $1m
  • 75% up to $3m
  • 70% up to $5m
  • 65% unlimited, and assessed on its merits

Indicative Low Doc Commercial Rates  As a guide, for standard low doc commercial properties, variable rates normally sit between 6.5%. to 7.5%

The trend in 2022 seems to be mixed for the commercial property market. Even though growth takes place at a slow pace, property values may be higher at the end of the year.  Many analysts didn’t anticipate the average price rise would be stronger the way it was in 2021. As auction clearance rate dropped,…
Interest Only  A borrower can negotiate with lenders interest only repayments. Lenders can only allow this situation if the business has large cash-flow deposits that are capable of making large interest only repayments before its period expires.  The common interest only commercial term loan is 1-2 year term.  Select commercial loan lenders prefer a 5-year…
Earning money involves a lot of hard work, and no one wants to lose it casually, so people want to save every bit. So, you cannot afford to go solo when you need to slice some few bucks off a significant real estate deal. Just ask yourself whether it would be worth it to spend…
Commercial Specialists INCOME FROM DAY ONE It's all about the cash flow. An example. Purchase price $1m. Govt costs (including stamp duty) and misc $50,000 Total cost $1,050,000 Option 1 Deposit of 20% say $200,000 plus $50,000 for costs. Total outlay $250,000 80% Commercial loan is $800,000. Assumption is deposit is borrowed on a residential…