I need good finance company...??

Hi Everyone,

I've been with NAB for few years now and so far so good, i buy land build and sell townhouses, im a small builder/developer.

Problem that i have is i do everything to reduce my income on books, so if i build 3 townhouses i leave 1 for myself and that way there is no profit on books, but i have it in the assets, so if i sell it one day i will pay whatever i have to pay, but at this stage i don't pay much tax and NAB always gives me hard time approving the loans, so far i have no rejections but it does take a lot of time and a lot of paperwork to go through.

What im after is a bank/broker that can approve me quick Loans as Low Docs or similar, i've got plenty of assets and i don't borrow more then 80% also i dont mind higher interest as im only going to have short loans.

If you know any landing authorities that would deal with me please let me know who they are.


Thank you ;)
 
What im after is a bank/broker that can approve me quick Loans as Low Docs or similar, i've got plenty of assets and i don't borrow more then 80% also i dont mind higher interest as im only going to have short loans.

Unfortunately you can't really have it both ways. Lenders are required by law to verify that you've got enough money to service the loan and if you're self employed, the only way they can do this is via taxation records. If you're deliberately reducing your tax liability by manipulating your income to be low, then lenders can't meet their legal obligations and thus can't lend you money.

Lo doc loans are unlikely to give you much joy. Most lenders will attempt to verify your income via your BAS statements, which will leave you in the same position. There are several lenders that will verify income on the basis on an accountants declaration but you'll find that most accountants are unwilling to sign a declaration that they know to be false.

The best way forward on an ongoing basis is to run your business properly and profitably. Keep the books up to date and pay the tax. Interestingly I've noticed that this has the side benefit of having a better and more sustainable business over the long term.
 
Without having all the info a bit hard to say but looks like you need a lo doc construction loan.

Here are the details of one lender that will do lo doc and may suit:

1. Max LVR of 65% of end value
2. Max loan amount of $2mil (can go higher but needs to be a very strong application)
3. Interest rate is going to be around 9-10%
4. Fees are going to be approximately 3% of the loan amount.
5. Max development size 8 units
6. No presales needed

You will require an accountants letter confirming your proposed income.
 
Capital gains or future capital gains is not considered acceptance income for most lenders. I would stick with Nab if I were you if this is what they have been assessing.
 
We lend our own money on unregulated loans not covered by the NCCP legislation and do a lot of short term development loans but have a feeling you won't like the interest rates charged.

As Pete said i think i would look at staying put with NAB if they are approving the deals albeit with a bit of extra paperwork.

Cheers
 
Dear Mortgage Brokers, as y'all would be well aware, P2P lending has exploded all over the Western World in the last decade or so. However, in typical nanny state fashion, the Australian Government has decreed it only be made available to sophisticated investors.

Any news of this stupid declaration being repealed any time soon?
 
I cant see it happening any time soon, lenders lending to consumers need to be licensed under the current legislation and I am not sure how the current p2p platforms address this with just a credit check and application form completed by the proposed borrower. This wouldn't be considered as sufficient "reasonable enquiries and verification" for a home loan as it stands currently.

Hopefully over time p2p lending will grow and put into perspective a few things for the legislators and lenders alike. For the borrowers out there though I wouldn't get too excited I cant see investors lending at same as bank rates on anything but the most vanilla of scenarios. Would you risk your own coin on a deal that a bank wouldn't do and if you would what premium would you require? This is why private lenders charge what they do!
 
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