Commercial property borrowers often hear the terms full doc, alt doc and lease doc. Understanding the difference can help you choose the right pathway.
What is a full doc commercial loan?
A full doc commercial loan generally requires complete financial documentation such as tax returns, financial statements, profit and loss statements and business activity statements.
What is a lease doc commercial loan?
A lease doc loan may allow lenders to assess the application primarily using the rental income generated by the commercial property. This can be useful for investors with strong lease income but complex personal or business financials.
What is an alt doc commercial loan?
Alt doc lending may use alternative income verification such as accountant letters, BAS statements, business bank statements or trading statements.
Who may suit lease doc lending?
Lease doc options may suit:
- Commercial property investors
- Borrowers with strong tenants
- Self-employed clients with complex financials
- Borrowers seeking simplified assessment
What lenders still assess
Even under simplified documentation, lenders still consider property quality, lease strength, tenant profile, loan size, LVR and repayment strategy.
How Nine Fincap can help
Nine Fincap can review your commercial property, lease income and borrower structure to determine whether full doc, alt doc or lease doc lending may be suitable.
Want to know whether your lease income qualifies? Check If Your Lease Income Qualifies with Nine Fincap.
Disclaimer
This information is general only. Lending options are subject to lender policy and assessment.