Full doc vs Low Doc for Self-Employed

Discussion in 'Loans & Mortgage Brokers' started by pinot, 16th Nov, 2019.

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  1. pinot

    pinot Active Member

    24th Jan, 2019
    Burwood East
    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!
  2. Lindsay_W

    Lindsay_W Well-Known Member

    1st Jul, 2015
    QLD/Australia Wide
    Yes, probably your only option
    unless you can service the debt on wife's income only.