Hi guys,
My sister and bro in law have a low Doc loan with Wbc for 300k on a property worth 1.0m. No other debts. They need 100k cash out to pay my parents for monies owed for the reno they did. My sister now works as a teacher earning 50k gross plus they have a rental property they get 12k in income a year. They have 2 kids. Unfortunately my sisters income alone cannot service the debt and all other expenses and my bro in law can make up the shortfall as he makes about 30k a year on a part time basis for his business. This would get it over the servicing shortfall I believe but problem is he is not registered for gst and does not lodge bas statements. What lenders can look at this? It is a no risk deal with such a low lvr but I know major banks will cause them grief due to the gst issue and responsible lending piece. Have not approached current lender yet but I would not hold my breath. Any help would be appreciated.
If he legitimately makes $30k/yr net profit before tax in the business and have tax returns showing him receive this consistently, they may be eligible for a full doc loan. BAS/GST registration is not a requirement of full doc loans, unless they’re claiming they’re earning above the GST threshold but not registered. ;)
Best they speak with a broker who is used to dealing with self employed clients and they can run through the exact options for them – it sounds like a nice simple one.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Sounds like a fairly straight forward deal given the income is declared net profit.
Remember GST has nothing to do with earnings but more to do with turnover.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
When it comes to these sort of specialist circumstances, I always point towards education. Inevitably your broker will be the guiding light, but it helps to understand the types of specialist loans out there and what they mean.
RCastle | Fortress Funding
http://fortressfunding.com.au/Help when the banks won’t
Lenders will look at your brother in law tax returns. If the numbers work, there shouldn’t be an issue.
Suggest having a preliminary discussion with a broker to get specific advice.
Cheers,
EthanEthan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
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