A commercial lease doc loan is one that our Experts are presenting as a solution more often. Many don’t fully understand what a lease doc loan entails.
Instead of using the financials of a business to assess your serviceability of a loan, a lease doc loan involves assessing lease income on a property and using this to measure your ability to service a loan. Depending on your rental income, you may not be required to provide any other financials.
Will you have to provide other documents when applying for a lease doc loan?
Our experts have access to a panel of lenders who can provide you with a lease doc loan. As a tenant’s lease is used to measure the serviceability of the loan, you are unlikely to be required to provide full documentation. These lease agreements mean that you can often get interest rates comparable to standard full doc loans (you may have a higher interest rate on a low doc loan.)
Lease doc loans offer similar rates to standard full-doc loans. It’s possible that terms will be more competitive than a standard loan. If you have a higher deposit to start with then it’s possible that your interest rate will be lower.
As mentioned, the strength of rental income is used by a lender to assess your ability to service a loan. This means you
- Won’t require payslips
- Won’t require BAS or Bank Statements.
These loans are an option of your lease income exceeds your interest payments. They must be able to cover the interest payments on your loan.
How long can you get a commercial lease doc loan for?
The panel of lenders our Experts approach each have different terms. The term offered can also depend on how long is left on your current lease agreement. If you have over one year on your current lease term then some lenders may offer you up to 25 years. It’s also possible that lease term reviews may be part of the application process.
Can my property be covered by a lease doc loan?
Our panel of lenders can cover a variety of commercial properties including:
- Retail Shops
- Commercial Offices
- Industrial Units and Factories
- Shopping Centres
- Office Buildings up to 5 Floors
- Warehouses and Workshops
- Mixed Residential & Commercial Use
- Medical / Professional Suites
- Residential Unit Blocks (4 or more)
Lease doc loans are appealing to many but they are not suitable for everyone. If you are seeking to grow your property portfolio, gaining finance at a competitive interest rate, you really should speak to one of our experts about a lease doc loan. Our experts provide lease doc loans as well as many other commercial finance products. We can assess your individual needs and tailor a solution for your personal circumstances.
Get in touch with us today.