ALT-DOC
Borrow Well
Adelaide’s Property Lending Strategists.
Self Employed & Alt-Doc Loans
Self Employed? Use Cashflow, Not Tax Returns.
If you are a business owner, you know the drill: Your accountant works hard to minimize your taxable income to save you money. But when you walk into a major bank, that low 'net profit' figure on your tax return often results in a declined loan application.
At Borrow Well, we don't think you should be penalised for being tax-efficient. We specialize in Alt-Doc (Alternative Documentation) lending, which allows us to assess your borrowing power based on your business's real cash flow, not just the bottom line on your tax return. Often at great interest rates.
How does a Low Doc (Alt-Doc) Loan work?
Gone are the days of 'No Doc' risky lending. Modern Alt-Doc loans are safe, regulated, and offered by many reputable lenders. Instead of asking for 2 years of tax returns, we prove your income using alternatives that reflect your current trading:"
Business Activity Statements (BAS): Using your last 2-4 BAS to show turnover.
Business Bank Statements: Using 6 months of statements to show real cash flow.
Accountant’s Letter: A simple declaration from your accountant confirming your true income.
Are the interest rates higher?
A common myth is that Low Doc loans have sky-high interest rates. In reality, the gap has closed significantly. While rates can be slightly higher than a standard 'Full Doc' loan (to account for the risk), they are still very competitive. Plus, many of our clients use these loans to get into the property market now, and then refinance to a standard rate once their tax returns are up to date."
Real Example
Emma’s personal portfolio features an alt-doc loan on a property in SA.
Term: 30 Years
Interest Only: 3 Years
Interest Rate: 6.29%
This is super comparable to mid-range first tier lenders, and alt-doc loans come in all shapes and sizes to suit your cashflow needs, with varying terms of 10 - 30 years, interest rates are usually 0.5 - 1% higher than first tier lenders.