Minimum borrowing with no proof of income?

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fxdaemon
Participant
@fxdaemon
Join Date: 2013
Post Count: 114
February 13, 2017 - 12:43 pm
Hi experts
Have a tenanted IP fully paid off no mortgage and current contract job coming to an end in couple more months.
I am planning to just borrow the minimum amount against the IP equity as capital to start small business when
the contract job finishes up. That means I will have absolutely no income to show for.
Some details on IP:
– Bank valuation $850K
– Weekly rent $650/week
I am looking to borrow $250K ie LVR of just a bit less than 30%.
Without the contract job income or any other source of income, will it still be possible to borrow that amount?
If so, what kind of interest rate am I up against?
Also, don’t currently own any other home and staying with my brother for now and have no other financial commitment.
Thanks
FXD
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
February 13, 2017 - 10:48 pm
You probably won’t be able to borrow without an income other than rent because of the minimum living expenses the lenders will assume.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
February 13, 2017 - 10:56 pm
Yes it is possible as the loan will be in the name of the new business.
Will be done as a Nodoc loan (No income evidence required) by way of 1RM against the security property.
Rate will be circa 7.00 -7.75% Per annum.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender