What is a Lease Doc Home Loan?

Under a lease doc loan for a bank or lender to only use the rental income from the investment to service the loan a bank or lender may typically require a larger deposit than that of your average home loan (more than 20%). This also mean the the client will need to have this deposit plus standard closing costs on top.

Depending on the lende the supporting documentation may vary and lenders may apply their own adjustments to the rental income used for servicing purposes and may also impose maximum loan-to-value ratios, minimum rental coverage requirements or restrictions on acceptable property types depending on the location and type off asset.

The borrower may still need to satisfy other lending requirements relating to credit history, assets, liabilities, identification and the proposed loan structure.

We can lease with yourself and your trusted professionals to help meet your requirements and objectives if this is something you are wanting to do.

Lease doc lending can be more specialised than a standard home loan because lender policies can differ significantly.

A property may generate sufficient rental income but still fall outside a lender's policy because of the property type, location, lease structure, valuation, required loan amount or the way the lender calculates acceptable rental income.

Investors may also find that a lender requires additional documentation or applies different servicing assumptions than expected.

We can review the property, lease documentation and proposed borrowing structure and compare these details against the requirements of lenders that offer relevant products.