Low Doc Loans

Bayside Commercial Mortgages provides low doc commercial, construction and residential mortgages. Residential loans have different requirements due to the new National Consumer Policy/Act which came into force in July 2010. This policy/Act is enforced by ASIC.

The major change is how lenders are to view residential loans. Prior to 30 June 2010, if the purpose of the loan was for investment or business purposes it did not come under the Act. From 1 July 2010, if you purchase or renovate a residential property and you require a loan to do so, this will now come under the act.

According to ASIC, the purpose of the loan is the main focus of the Act and not the security offered. If the borrower is an individual and requires the money for that purpose, they must be able to prove to the lender (i.e. with up to date financials and tax information) that they can afford to repay the loan.

If the borrower is a company and the purchase of a residential property is in the company name, then it remains outside of the Act.

Under the Act, accredited mortgage brokers and lenders are the only ones who can advise you on your individual lending proposal. Unless licensed, solicitors and accountants will need to refer you to a lender or a licensed mortgage broker for lending advice.

Bayside Commercial Mortgages is an accredited, licensed mortgage broker.