Asset based lending

Discussion in 'Loans & Mortgage Brokers' started by J61, 2nd Jul, 2018.

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  1. J61

    J61 Member

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    Hi, I’m mindful that banks will mostly lend based on full income serviceability so including all sources of income. But I’m curious if anyone has come across alternative lenders that just underwrite based on asset level serviceability e.g. strong cashflow of property only and it may be at very low LTV?
     
  2. tobe

    tobe Well-Known Member

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    There are a few lenders doing loans for commercial properties based just on the lease income. ‘Leasedoc’

    None in the residential space that I know of. The closest would be low loc polices where all the normal expenses are calculated but the self employed income is verified alternatively. With bas statements, an accountants declaration or business banking transaction history for instance.
     
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Would need to fall outside the NCCP so commercial property or company borrowers.
     
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Doable . But.. one is playing with the devil
     
  5. J61

    J61 Member

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    Thanks for the responses, that’s helpful to know.
     
  6. Richard Taylor

    Richard Taylor Well-Known Member

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    Certainly can be done in a personal name but will depend on the term of the loan required.

    Not cheap but bottom line is if it still works for you then is worth doing.

    Cheers