Self-Employed No Doc Commercial Loans
Short-term property-secured loan options for self-employed borrowers, companies and trusts who may not have current financial statements available. Funding may be considered for business, investment, bridging, construction, land, cash-out and other approved purposes where there is acceptable real estate security and a clear exit strategy.
Three things needed to assess a scenario
- Property address
The address and type of property being offered as security. - Exit strategy
How the loan will be repaid at or before the end of the agreed term. - Purpose of the funds
What the money will be used for and why the funding is required.
Common exit strategies
- ✓Sale of the security property
- ✓Refinance to a mainstream or longer-term lender
- ✓Receipt of an inheritance
- ✓Business or investment cash flow
- ✓Maturity of investments
Key lending features
- ✓First and second mortgage options
- ✓Residential, commercial and vacant land security
- ✓Residential stock, farms and selected rooming houses
- ✓Category 1 to 4 locations considered
- ✓Personal, company and trust borrowers
- ✓Foreign borrowers, expats and a broad range of visa types
- ✓Fixed interest rates rather than variable rates
- ✓Interest may be capitalised, subject to lender approval
- ✓Real estate security is always required
Indicative fee guide
Fees vary between lenders and transactions. The following is a guide only and must be confirmed for each scenario.
The commitment fee may be the only upfront out-of-pocket cost, depending on the lender and whether a valuation or quantity surveyor report is required. Final fees and charges are provided before proceeding.
No-doc and low-doc assessment
Where an investment property is being used as security and the exit is a genuine sale with no remaining debt, some lenders may not require a traditional borrowing-capacity assessment. This can be possible where interest is capitalised and there are no ongoing repayments to demonstrate during the term.
Where there will be an end debt, or the exit is refinance, additional evidence of serviceability is usually required. Depending on the scenario, this may be supported by an accountant declaration, payslips, rental statements, lease income or other acceptable verification.
Construction and development finance
- ✓Multi-unit developments and duplexes
- ✓No pre-sales required in selected scenarios
- ✓Owner-builder projects
- ✓Partially completed builds at any stage
- ✓Subdivision and civil works
- ✓Construction land banking
- ✓Residential stock and land banking
- ✓Up to 70% of gross realisation value excluding GST, subject to assessment
- ✓Projects with multiple dwellings on one title may be considered
Incomplete construction
For an incomplete construction project, some lenders will assess the security using the land value together with the capital works already completed. The stage of construction does not automatically prevent consideration, and both residential and commercial projects may be assessed.
Category 1 to 4 locations may be considered. In some Category 4 locations, the lender may require additional security support, such as a charge or limited second mortgage arrangement over another property.
Bridging and downsizer scenarios
- ✓Buying before selling an existing property
- ✓Retirees who are asset rich but cash poor
- ✓Downsizing or upsizing
- ✓Property improvements or staging before sale
- ✓Cash-out for short-term liquidity
- ✓No age limit where the exit is acceptable
- ✓Loans up to approximately 70% LVR, subject to lender policy
Example scenario
A borrower finds a new home before selling their current owner-occupied property. A 12-month bridging facility allows time to improve, stage and sell the existing property. The sale clears the bridging loan, leaving no end debt.
Business and equity-release purposes
- ✓Working capital and business cash flow
- ✓ATO debt and tax debt resolution
- ✓Business or share acquisitions
- ✓Partner buyouts
- ✓Purchase of stock, equipment or other assets
- ✓Purchase of residential, commercial property or land
- ✓Debt consolidation for an approved business purpose
- ✓Cash-out for business or investment use
Example scenario
A business owner uses an unencumbered property as security for a short-term equity release to fund urgent stock purchases and working capital. The facility is repaid through the agreed exit strategy, such as sale or refinance.
Security and borrower types considered
- ✓Owner-occupied or investment residential property
- ✓Commercial property
- ✓Vacant land and development sites
- ✓Residential stock and farms
- ✓Individuals and self-employed borrowers
- ✓Companies and trusts
- ✓Expats and foreign borrowers
- ✓Selected low-care NDIS properties
Discuss Your Scenario
Every funding scenario is different. Tell me about the property being offered as security, how much you need to borrow, the purpose of the funds and your proposed exit strategy. I will review the information and let you know whether I believe there may be a suitable funding option.