Lease Doc Commercial Finance
Is a flexible loan designed for purchases, refinance or equity release, with no income verification required, other than rental income derived from the security property. With a few lenders, the other benefit of a ‘set and forget’ loan without the need for annual reviews.
- Maximum LVR 70%*.
- No payslips, tax returns, bank statements, BAS or financial statements required.
- Loan terms, up to 25 years.
- Interest only periods of 5 years can be considered, depending on interest cover ratio and term of the lease.
- No annual reviews or valuations (reviews may be required at lease renewals).
- Purchase or refinance of existing dwellings (no vacant land or construction).
- Equity releases acceptable.
- Lease must have a minimum 12 months remaining and be arm’s length (not leased by your own company)
- LVR based upon Real Estate value only.
- Loan amounts are restricted to LVR (65% above (lower loan amount) / 65% below (higher loan amount)
Banks are more selective on types of properties, that can be taken as security.
Your property must be:
- Commercial (retail, industrial, office or warehouse) located in a major metro area.
- Regional area with a population greater than 100,000
Residential investment property
Commercial lease doc loan on a residential property, if your loan is not NCCP regulated:
- Loan in the name of a company (not a natural person);
- Loan used predominantly to invest in commercial property, shares or a business.
- Residential property, needs to be located, in a town of at least 10,000 residents.
This means, you can release equity from a residential property you own, however you cannot release equity to buy another residential property, as this would be regulated under the NCCP Act.
*As lending policies change from time to time, this can affect rates, ratios and amounts to change.