Another Lodoc lender tightens the noose
- Thread starter Qlds007
- Start date
exactly
All Low Doc applications must now be supported by the following verification as part of the application:
1. Business Activity Statements (BAS) for the past 12 months and ATO
Lodgement Reference Number AND
2. The last 3 months account statements evidencing payment of tax as advised
on the BAS.
If BAS and account statements are not able to be provided, the application
will not be eligible for a Low Doc loan. Please note that no exceptions will be made.
Applicants who are not required to complete BAS (eg; where Gross Business Turnover (GBT) is less than $75,000) can only proceed on a full documentation basis, and will be required to provide their full financial position as required under the RAMS Guidelines for Self-Employed applicants.
What about Westpac?
Do they still do no financials lo doc up to 80%?
Do they still do no financials lo doc up to 80%?
Hiya GTF
in short , no
ta
rolf
in short , no
ta
rolf
Oh bugger. This could be a spanner in my works!!
So "in short" - no. What about "in long"??
We have to settle on Nov 30 and can't apply until Nov 21 when my husbands ABN has been active again for 24 months!
We could scrape a lo doc 60 in on the buy price but what a pain!! Leaves us having to source an extra $60k.
What about Suncorp? They pre-approved a lo doc 70 for us. Are they still good to go?
So "in short" - no. What about "in long"??
We have to settle on Nov 30 and can't apply until Nov 21 when my husbands ABN has been active again for 24 months!
We could scrape a lo doc 60 in on the buy price but what a pain!! Leaves us having to source an extra $60k.
What about Suncorp? They pre-approved a lo doc 70 for us. Are they still good to go?
Get ready for the flatline...
You won't be alone GTF. This will be a shock for many who have been planning purchases or small developments/construction that rely on lodoc loans. Got my latest application in with STG last friday so I was fortunate. New purchases will now be full doc. Time to alter the strategy and move on. Surprising that they cut it out so suddenly. Good luck.
It's just a matter of time before all low docs from all banks will have the above new criteria won't they, as it's Genworth and PMI (I assume them as well now?) who are imposing it. Banks just do what they're told. I guess a possible exception would be if a bank self insures below a certain LVR?
*Token Funder desperately resists the urge to say i told you so*
^^ Futile attempt!
Does this mean that current low-doc customers need to convert there loans to full-doc? I would certainly have difficulty providing proof of income if this is the case - hope not!
Cheers,
Bazza
Hi Keith
My thoughts were on same line.
Do you know reason why exactly, are cashbonds too expensive to set up??
Cheers, MTR
No, though the IR may increase to above SVR for full doc
Hiya
Its broker talk for more comm.
Nah seriously, where your lo doc isnt with a major, youd want to look at moving it across to balance sheet funding.
Where you have a lo doc with a major................in general, conversion to full doc for most people with the same lender isnt possible for various reasons, and needs to be considered VERY VERY VERY carefully.
ta
rolf
Its broker talk for more comm
.Nah seriously, where your lo doc isnt with a major, youd want to look at moving it across to balance sheet funding.
Where you have a lo doc with a major................in general, conversion to full doc for most people with the same lender isnt possible for various reasons, and needs to be considered VERY VERY VERY carefully.
ta
rolf
Token Funder no need to,you have been telling everyone in the site for a while now but my question is what's next to happen in the Money Lenders world,finance can only tighten up so much,the property buying machine*Token Funder desperately resists the urge to say i told you so*
and all that work under that banner
is still in full swing,talk to any agent now is the time to buy,my old economic clock tells me different the next stage of the cycle with be rising share prices,what do you think as you have your fingers on more info that normal front bar drinkers like me can ever get thier hands on..imho..willair..
I can see some who were looking at property investment with lo doc loans investing in the sharemarket instead (and using the leverage from margin loans). May result in increased demand for shares.
I understand there are moves to tighten up margin lending as well (something about know your client requirements). As of today I can get 90% lvr on BHP on margin loan (no questions asked).
I understand there are moves to tighten up margin lending as well (something about know your client requirements). As of today I can get 90% lvr on BHP on margin loan (no questions asked).
