Lease Doc Commercial Loans are designed for investors with rental producing commercial properties. The Lease Doc product is where servicing is established by income from a quality third party lease servicing the debt without the necessity to provide financials or tax returns or confirmation of other assets or other liabilities.

The majority of lease doc borrowers fall into one of these categories:

  • Self funded retirees.
  • People with a complex financial situation.
  • Self employed borrowers with no income evidence.

Benefits of a Lease Doc Commercial Loan include:

  • LVR’s up to 70%
  • Loan Terms up to 30 years (Some lenders review the loan term in line with the renewal of the lease)
  • Interest only periods may be considered depending on the interest cover ratio and the term of your lease.
  • No annual reviews (with some Funders)
  • No payslips, tax returns or financial statements are required.

What do Lenders look for in assessing a Lease Doc Commercial Loan?

  • The remaining term of the lease and strength of tenant
  • Only multi use Commercial Investment Securities accepted (non specialised – retail, industrial, office or warehouse) within acceptable locations.
  • Lenders want to see a true arm’s length transaction and confirmation that Lease is executed and a bond paid before formal Approval is Granted
  • The interest cover ratio#

# The interest cover ratio is the number of times that the lease income will cover the loan repayments. Most lenders require 1.1x to 1.5x interest cover ratio.  Assessment may include a buffer of up to 2% above the interest rate and depending on what costs are met by tenants, the lease income maybe reduced by 20%.

Compare the product matrix below then click on the more info button to see further features of these low doc loans.

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Applicant Type Individuals, Companies and Trusts Individuals, Companies and Trusts Individuals, Companies and Trusts
Acceptable security Locations. Capital Cities and Major regional Centres Capital Cities and Major regional Centre Capital Cities and Major regional Centre
Credit Issues Considered Nil Considered Considered
Maximum LVR 65% 70% 70%
Maximum Loan $2,000,000 $5,000,000 $2,000,000
Income Verification Required (minimum)
Certification requirements Either 2 Any 1 Any 2
Accountants Verification
6 Months BAS statements
6 months Business Bank Statements
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*Interest Rates: All rates are subject to change without notice. Please check all rates and terms before applying.