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What's new in finance? NEW No Doc options for investors
Following on from last month's update on new innovations in the Low Doc space, this month I bring you news of some exciting new No Doc options for property investors.
If you remember from my article last month (click here to view) there are three categories of loans in the market at the moment – Full doc, Low doc and No doc.
No-doc loans are those where the borrower provides almost no documentation to the lender. The borrower doesn't need to state their asset and liability position and there is no need to declare any income to pass any serviceability test.
These types of loans typically have 65-75% LVR, and interest rates are normally higher than full and low doc products.
These loans are mainly for people who are self-employed that can't or are unwilling to verify their taxable income.
NEW Cash Flow Mortgage™ No Doc option:
The Cash Flow Mortgage™ suite of loans keeps expanding which is great news for property investors who don’t want to wait forever for their investments to turn cash flow positive.
Available immediately, our 4 year and 2 year Cash Flow Mortgage™ loans are now available on a No Doc basis.
The same pricing applies to these loans as the Lo Doc Cash Flow Mortgage™, but the Loan to Value Ratio (LVR) is reduced to 70% at the outset for the 4 year product (whereby the Year 1 interest capitalisation component is 4.25% and Year 2 is 3%)
The 2 year product (whereby the Year 1 interest capitalisation component is 3% and Year 2 is 2%) has a 75% LVR at outset.
This means that even more of you can qualify for this innovative loan product up to $1.25m.
So what does this all mean for you and your investing?
If you are entering No Doc territory with your investing, or perhaps thought that you could not gear your portfolio any further, this is a good option for those who thought they couldn't borrow any more.
You too can now access the most innovative capitalized interest product on the market.
What's more is that this product provides you with simplicity as there is less information and documentation to provide given it is essentially an asset lend product.
The key requirements are a one day ABN requirement, a simple statement of affordability and no Asset and Liability statement is required.
For any of you who still wonder what the fuss over the Cash Flow Mortgage™ is all about, feel free to come and see one of our Strategists who are happy to enter your data and some realistic assumptions into our Cash Flow Mortgage™ calculator - and see how powerful this loan can be, in terms of wealth creation.
Our team looks forward to speaking to you soon!
Michelle Coleman
National Sales Manager
Investors Direct
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