Low doc commercial loan

A low doc commercial property loan is a mortgage for your business premises. It can be used for funding a commercial property purchase, refinancing an existing commercial loan, buying new equipment or financing other business activities.

Our low doc commercial loan works in a similar way to a normal full doc commercial loan. It can be extended for a loan term up to 30 years. You can choose between Principal & Interest or Interest Only repayments. You can also select loan features such as split accounts or an offset facility.

The key difference is that low documentation (low doc) or alternative documentation (alt doc) loans are a way to acquire loans for people with income and assets, but without the regular ways to prove this. With a low doc loan you can use an accountant declaration, BAS or bank statements to evidence your income instead of tax returns.

We can use an accountant declaration, 6 months of Business Activity Statements (BAS) or transaction statements. We would also require standard loan documents such as identity documents, contract of sale for purchases or rental income statements if the property is already rented.

The interest rates for low doc commercial loans vary based on several factors including loan-to-value ratio (LVR), the type and location of property and the financial strength of the borrower. Yard is a non-bank lender that specialises in low doc loans and offers competitive interest rates. In general, low doc loans have a higher interest rate than normal full doc loans as alternative documentation is used for income verification.

Yard can provide low doc commercial property loans with 20% deposit up to 80% LVR for a new purchase or a refinance of an existing loan. The deposit requirement could vary based on the location and type of property used as a security for the loan.

Yard completes a serviceability test to determine how much you can borrow for a commercial property. To estimate this, we would review your income, expenses, and existing loan commitments. You also need to demonstrate that you have sufficient assets to provide a 20% deposit.

Yard can provide commercial property loans with a term of up to 30 years.

The key difference between a commercial property loan and a residential loan is the property type and loan objective.

Property type:
    •   Residential mortgages are used for financing properties where the borrower intends to reside, such as houses or apartments.
    •   Commercial mortgages are designed for commercial properties used for business purposes, including office spaces, warehouses, retail shops, etc.

Loan objective:
    •   Residential Mortgages are primarily used for personal housing needs
    •   Commercial Mortgages are used for business purposes, such as acquiring income-generating commercial properties for investment or the borrower’s own business operations