Are Commercial Low Doc Loans to 80% LVR available in Australia?

Yes, Commercial Low Doc Loans are available in Australia to 80% LVR in high population areas to those applicants that have a clean credit file. If credit Impaired the limit is 75% LVR and are only available in Capital Cities or cat 1 locations in Australia.

When purchasing a retail location or using it for your own business commercial properties can still produce short or long term profits if the property is in the right location. The loans differ from standard bank commercial property loans that generally require 2 years of lodged tax returns.

What Documents do I need for Commercial Low Doc Loans?

  • An Accountants Letter verifying your income.
  • 6 months of Lodged BAS Statements from ATO Portal
  • 6 months of Business bank statements

You must have an ABN that has been registered (and possibly GST registered if income is over $75,000) Most Lenders require ABN to be registered for 2 years. We have lenders that will accept an ABN registered for only 6 months.

A percentage of the property value, typically 20%, is a prerequisite for loan approval. In addition the closing costs are due upfront and the responsibility of the company, they cannot be included in a commercial mortgage. And while the length of these loans is the standard 2 > 25 years commercial investment property loans are difficult to fund.

Refinancing is an option many businesses use at the end of a commercial mortgage to avoid making the large payment at the end.

Commercial income property, such as industrial office buildings, motels, shopping centers, retail buildings and large apartment buildings, are not hard to find. Many commercial properties are in default, bankruptcy and foreclosure, making it easy to find a good deal. However, the price of the property isn’t the main consideration when determining if it is a good investment.

Location of Your Commercial Property is Very Important

The location of the property can turn an income investment into an income disaster. A realtor familiar with the location where you want to invest can tell you if the traffic in an area is suitable for the business you want to purchase or if there is a risk of over-saturation for your potential venue.

Commercial low doc loans can still be an option for Businesses that do not have up to date lodged tax returns in Australia. Due diligence is essential to guarantee success and repayment of the loan. When the research is complete and the decision is made then you can guarantee short or long term success.