CBA Low Doc Viridian LoC

[SamA]

Have an existing CBA pro pack (full-doc Viridian LoC). Questions in respect of taking out new Viridian LoCs (new IPs) on a low doc basis (80% lends) with CBA:

• Does exisiting pro pack cover new low doc Viridian LoCs? Is there a limit on number of loans covered on single pro pack?
• ABN and GST registration requirements? Does this depend on stated income?
• Who mortgage insurers CBA loans (80% LVR lends) and what is their maximum exposure before they turn someone away on future low doc lending?
• Is there a per loan or porfolio minimum for 0.7% rate discount to apply to new low doc loans? Currently have this discount applied to full-doc Viridian LoC.
• If low doc stated income is substantially higher than income identified when full-doc was taken out (some time back) is this likely a problem? No LMI was involved with prior full-doc loan.
• Related to last question, presumably there is some sense in declaring the same/similar income when future low docs (subsequent to the first) are taken out at least from the same bank/lmi insurer? ie. not increasing stated income for each new low doc as bank/LMI insurer may have cause for concern?
• Any ongoing feature/policy differences between low doc vs full doc Viridian LoC?

Sam.

 

[Nth Brisbanite]

Have an existing CBA pro pack (full-doc Viridian LoC). Questions in respect of taking out new Viridian LoCs (new IPs) on a low doc basis (80% lends) with CBA:

• Does exisiting pro pack cover new low doc Viridian LoCs? Is there a limit on number of loans covered on single pro pack?
• ABN and GST registration requirements? Does this depend on stated income?
• Who mortgage insurers CBA loans (80% LVR lends) and what is their maximum exposure before they turn someone away on future low doc lending?
• Is there a per loan or porfolio minimum for 0.7% rate discount to apply to new low doc loans? Currently have this discount applied to full-doc Viridian LoC.
• If low doc stated income is substantially higher than income identified when full-doc was taken out (some time back) is this likely a problem? No LMI was involved with prior full-doc loan.
• Related to last question, presumably there is some sense in declaring the same/similar income when future low docs (subsequent to the first) are taken out at least from the same bank/lmi insurer? ie. not increasing stated income for each new low doc as bank/LMI insurer may have cause for concern?
• Any ongoing feature/policy differences between low doc vs full doc Viridian LoC?

Sam.

One of the Mortgage Brokers on this forum might confirm this. However, I am pretty sure that if you already have a full doc with CBA that you probably won't get a low doc with them. CBA have got all your financials and will probably question why you want to go low doc.

It may be better to go to another bank to get your low doc loans as they don't have any information about you.

 

[Qlds007]

Yes Nth Brisbanite is correct.

Most lenders wont allow you to go from full doc to lodoc but are quiet happy if you go the other way around.

Other issue maybe the mortgage insurers who will know your situation so would certainly recommend you look to switch lenders maybe use a lender who self insures.

 

[Peter_Tersteeg]

A lo doc with a lender who you already have a full doc loan is unlikely to be successful for the reasons already discussed, unless at least 2 years have passed. A new ABN would also be useful.

To answer your other questions, beyond applying mortgage insurance between 60% and 80%, the Lo Doc version is bascially the same product. You require an ABN for at least 2 years which must be registered for GST if you declare an income over $75,000.

The 0.7% discount applies to the aggregate borrowings.

You should declare and income relative to what you actually earn. You can easily declare a higher income to meet serviceatiliby, and you could reasonably increase this over time to meet future serviceability. The ATO can audit lenders and compaire your declaration to the bank against what you've declared to the ATO. A significant difference could have nasty conciquences with the ATO.

 

[Spectre]

Actually w/cba the low doc timeframe is 1 year where most of the other lenders are 2. You just have to watch the gst registration timeframe as if its over 75k they wont accept a 1 day gst rego.

Its a niche cba has in the market

What you have to watch though is if your existing loans are not insured cba will insure the loans secured by that property, even if they were done on full doc.

You're probably better to spread the debt and have less of a reliance on one lender.