Full doc vs Low Doc for Self-Employed

Hi PC,

Seeking the advice and guidance of the brain's trust here!

Bit of background:
- We moved from MEL to SYD @ the start of 2019.
- Currently living with the in-laws.
- Wife is employed as PAYG employee.
- Together, we took over my family business @ 1/1/2019 as a joint partnership (most tax effective now, will roll over to Pty Ltd soon). Business was purchased as a going-concern with good records over 10 years.
- Have 2 IPs, looking to buy PPOR. Looking to posistion myself for future business premises purchase too.
- Looking to purchase PPOR will approx 40% LVR, the remainder to be supplemented from existing equity (due to serviceability limit).

As the business records are only from 1/1/2019, we are having a little trouble with Full Doc Loans with the big banks (assuming a lack of sufficient documents). Would Low Doc be the best option given my scenario?

Option 1: Full Doc Loan - Ideal scenario, but auction comes up next week and turn-around time for full doc application with ANZ is about 10 working days. Not confidence inspiring going to auction, but would Option 2 and 3 be suitable backups?

Option 2: Low Doc Loan - Second best scenario, probably will have to do this during the contract settlement period (negotiated 70 days settlement).

Option 3: Purchase outright with OE. Greatest impact on equity as I won't have sufficient equity to purchase the business premises (I am pressing for a later purchase but have just signed a 3+3 lease).

Keen to get your thoughts. The gears in the brain are grinding!

 

Yes, probably your only option
unless you can service the debt on wife's income only.