Nodoc Loans are back

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?

PM, this particular lender is offering a low-doc or a no-doc loan - so it is "on the market".

In the past, the application process for these types of loans may have been a bit dodgy from some MBs. Legislation is now being introduced to make MBs more accountable for the information put on a loan application.

Token Funder and Qlds007 are debating whether or not what is put on a loan application for one of these types of loans would put a MBs licence at risk under the new legislation.
 
the real issue is determining "reasonable".

MB: How much do you earn?
NoDoc: I make >500k a year.
MB: Who's your employer?
ND: I work for myself.
MB: What do you do?
ND: Import & Distribution.
MB: What products you deal with?
ND: Day to day products that many people use. Demand is strong & increasing, and strictly cash bizness.
MB: 3mil seems a lot to buy a warehouse.
ND: I need to build concrete temp controlled storage underneath, saves me space & rent.
MB: What products you sell?
ND: Naturally grown and proven therapeutic products to relieve the stresses of daily life.
MB: Vitamins?
ND: Not exactly, but we have products to make people relax, and other that make them stay awake longer, like Red Bull, but a ...little stronger.
MB: How many staff do you have?
ND: None, they're all subbies.
MB: I need to "verify your financial situation", what can you show me?
ND: That's why I brought my suitcase, it's got 200K cash in it. The Continental GT out there is mine as well, and I have Lambo.
MB: Well it seems you meet all the requirements of the National Consumer Code and it seems you can easily afford the repayments.
Welcome!

MB: btw I can also help with life insurance and inventory finance to improve your cashflow.
ND: Great! That'll be swell.
 
Piston Broke,
I understand what you are trying to say, but this is a separate issue.
Whether it is legal or not, has nothing to do with the loan.
It would still be up to the borrower to comply with the law.

If the interest rate etc is something Rob and I could live with, this NoDoc would be exactly what we would need.
We have lots of equity and income here in Canada, but we most likely wouldn't qualify for a conventional mortgage in Australia, which is what we will soon require.

Making the repayments isn't the concern. It is satisfying all the other requirments, we would have difficulty with.
 
The lender is Latrobe - they have have never actually removed the product it's just that why would you want a product 4% dearer than anything else in the market -

Why not work with your accountant and broker and actually get the loan to service on the rental & negative gearing and push it through as a full doc??
 
Piston Broke,
I understand what you are trying to say, but this is a separate issue.
Whether it is legal or not, has nothing to do with the loan.
It would still be up to the borrower to comply with the law.

If the interest rate etc is something Rob and I could live with, this NoDoc would be exactly what we would need.
We have lots of equity and income here in Canada, but we most likely wouldn't qualify for a conventional mortgage in Australia, which is what we will soon require.

Making the repayments isn't the concern. It is satisfying all the other requirments, we would have difficulty with.
Why not use the Candian Income and go full doc at 75% without the high interest rate
 
Do they do bridging loans? Like, lend you money for a few weeks/months between houses so you don't have to live in a cardboard box between selling one house and buying another?
 
am I dreaming if I was looking for a no-doc at the same rates as a full doc?

Off hand I know CBA (and I think Westpac as I was scanning their rates yesterday) offer same rate for low doc as normal, however I don't think they allow you the wealth package discount on them anymore (.15% for fixed, .7% for variable).
 
Off hand I know CBA (and I think Westpac as I was scanning their rates yesterday) offer same rate for low doc as normal, however I don't think they allow you the wealth package discount on them anymore (.15% for fixed, .7% for variable).

That's Lo-Doc not NO-Doc
 
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