Nodoc Loans are back

Interesting to read this morning that one of our lenders has re-introduced Nodoc loans again.

NO DOCS to 75%

No BAS Statements Required
No ABN Required
No GST Required
No Bank Statements Required
No Accountants Letter Required
Perfect for Non Residents
Unlimited Cash Out
Imapired options available
Nil Exit Fee

When 1 door closes another one opens. Dont you just love this market.
 
I don't understand how most lenders have tightened credit to within an inch of my life and then someone else can offer up all that?

I imagine the interest rate must be steep?
 
From Bill Zheng's Sep 09 e-newsletter out today:

We have seen in the last 12 months lenders are more and more reluctant to accept low-doc loans, this is a natural development during a tight credit environment.

I won’t be surprised if low-doc loans will be completely removed from the market for a little while until the credit market fully recovers.

So, this was serendipitous :D
 
Interesting to read this morning that one of our lenders has re-introduced Nodoc loans again.

NO DOCS to 75%

No BAS Statements Required
No ABN Required
No GST Required
No Bank Statements Required
No Accountants Letter Required
Perfect for Non Residents
Unlimited Cash Out
Imapired options available
Nil Exit Fee

When 1 door closes another one opens. Dont you just love this market.

Are you allowed to spill the beans on which lender??

Boods
 
Sting is in the rate im sure

There aint no free lunch, when it comes to rate for risk both sides meet somewhere.

Its Like Ed Nixon ( a broker who used to paost a it here) once said to me

You can insure a burning house for the right premium :)

ta
rolf
 
I don't listen to commercial radio much, but every time I do I seem to catch a Rams ad flogging Lo Docs - no idea what the details are.
Scott
 
I agree > 80% lvr things are tough however < 80% things seem to be getting easier.

Next thing 105% LVR will back in fashion .... let us hope not.

Havent got all the details just had an email this morning from one of the lenders.

As Rolf mentioned I am sure the Rate will not be friendly.
 
That's brilliant news for us low income folks who live on practically nothing and thus have more money to burn than people with a higher income - but have a snowball's chance of convincing a bank of it :rolleyes:

When you get the details - as well as the interest rates I'd like to know what kind of minimum term you can sensibly have the loan for, ie if you pay it out in < 1 or < 3 years, what's the sting?
 
Interesting to read this morning that one of our lenders has re-introduced Nodoc loans again.

NO DOCS to 75%

No BAS Statements Required
No ABN Required
No GST Required
No Bank Statements Required
No Accountants Letter Required
Perfect for Non Residents
Unlimited Cash Out
Imapired options available
Nil Exit Fee

When 1 door closes another one opens. Dont you just love this market.

I'm curious, Richard.

Do you see any risk to your (future) licence in using this sort of product?
 
Hi Stu

Yes it is MM and TK i agree ones License could be at risk depending on what it required on the application form.

That is one of the beauties of lenders like SGB with their affordability statement over an actual income declaration.
 
Hi Stu

Yes it is MM and TK i agree ones License could be at risk depending on what it required on the application form.

That is one of the beauties of lenders like SGB with their affordability statement over an actual income declaration.

Bad news for you Richard.... the lenders statement/declarations won't help you in the new world.
 
Hate to disagree but from the wording of the legislation I have seen it will.

If a client has not completed his last 2 years Tax returns yet states to you he can afford repayments of XYZ then where no income is declared and he signs the declaration to this effect the advice of a prominent firm of Lawyers who spoke at our Aggregators conference last week was that the introducer could not be liable.
 
Hate to disagree but from the wording of the legislation I have seen it will.

If a client has not completed his last 2 years Tax returns yet states to you he can afford repayments of XYZ then where no income is declared and he signs the declaration to this effect the advice of a prominent firm of Lawyers who spoke at our Aggregators conference last week was that the introducer could not be liable.

Was it Denovan or someone else?

Div 4 of the Act is pretty interesting:

Reasonable inquiries etc. about the consumer

(1) For the purposes of paragraph 115(1)(d) or 115(2)(b), the licensee must, before making the preliminary assessment:

(a) make reasonable inquiries about the consumer’s requirements and objectives in relation to the credit contract; and

(b) make reasonable inquiries about the consumer’s financial situation; and

(c) take reasonable steps to verify the consumer’s financial situation; and

(d) make any inquiries prescribed by the regulations about any matter prescribed by the regulations; and

(e) take any steps prescribed by the regulations to verify any matter prescribed by the regulations.

Civil penalty: 2,000 penalty units


Not sure "..but they signed something saying they could afford the repayments" will cut it, but time will tell.
 
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I agree > 80% lvr things are tough however < 80% things seem to be getting easier.

Sorry to side track a bit ... but curious to know this. Does it get any easier if borrowers go below 80% .. even by a tiny difference?

e.g. is it better to apply for 79k lend on 100k purchase (instead of 80k)?
 
I guess given the fact that commencement of the National Consumer Credit reforms has been deferred by 6 months to 1 July 2010 there is plenty of time to obtain further legal opinion.
 
I guess given the fact that commencement of the National Consumer Credit reforms has been deferred by 6 months to 1 July 2010 there is plenty of time to obtain further legal opinion.

ok, for the not so intelligent, does this mean that no-docs are going to be back on the market or at least for this particular lender?
 
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