This program is primarily for borrowers that:

• have been self-employed or have been full-time investors for at least the past two years;
• are unable to provide extensive financial statements or taxation returns at the time of their application for a loan;
• have a reasonable level of net assets; and
• are permanent residents or Australian citizens.

Co-borrower(s) may be PAYG provided they:

• are mortgagors; and
• supply income verification documents.

The requirements of all these products apply except as noted otherwise in this Fact Sheet.

Metropolitan, regional and country areas of Australia.

• 80% LVR for loans up to $500,000

Metropolitan areas of Australia.

• 80% LVR for loans from $500,001 to $1,000,000
• 65% LVR for loans from $1,000,001 to $1,500,000

Regional areas of Australia.

• 75% LVR for loans from $500,001 to $750,000
• 70% LVR for loans from $750,001 to $1,000,000
• 65% LVR for loans from $1,000,001 to $1,500,000

Metropolitan areas of New South Wales, Australian Capital Territory, Victoria, Queensland, South Australia and Western Australia only.

• 65% LVR for loans from $1,500,001 to $2,000,000

Metropolitan areas of New South Wales and Victoria only.

• 60% LVR for loans from $2,000,001 to $3,000,000

• Any loan will be considered for any worthwhile purpose, subject to the exclusions listed

• Loans for the repayment of any tax related debt.
• Loans to repay Directors loans.
• Loans for the purchase of a new business that will employ the applicant.
• Loans that are for the refinance of any loan that is currently in arrears.
• Loans that are not arm’s length transactions.
• Loans where the security property is vacant land.
• Loans for construction of the security property.
• Loans that are to fund the takeout of multiple properties within recently completed residential developments, where the borrower has been responsible for, or associated with, the development.

• Not applicable to the LoDoc Uninsured Program.

• A title insurance policy must be obtained for each security property.

General provisions

• Properties must be of a residential nature and zoned accordingly (including rural-residential).
• Properties must be located in Australian cities, regional areas or country areas as defined by the trustee’s Uninsured Security Location Guide.
• Properties must have no more than one residence on title.
• All standard services must be connected or readily available to the property.
• All properties must have legal and unrestricted road access.
• Properties (with a completed dwelling) that are less than 4.04 hectares (10 acres).
• The trustee reserves the right to exclude any security property for any reason, including limiting its exposure against properties in a similar location or with similar characteristics.

Rural residential properties

• Must have mains power.
• The property must not be of an income producing nature (properties producing rental income from tenants are accepted).

Units/flats/apartments

• Each must comprise an area of at least 50 square metres (excluding balconies and car space).
• Each must have a separate Certificate of Title.
• High density apartments (within a block of five or more stories and/or 30 or more apartments).

• Rural or similar zoned properties (including broad acre land holdings).
• Commercial zoned properties.
• Properties that have not been provided with town services.
• Properties (with a completed dwelling) that are in excess of 4.04 hectares (10 acres).
• Vacant land.
• Properties under construction or to be constructed.
• Owner-builder construction projects.
• Mobile and kit homes (i.e. transportable properties).
• Properties with more than one residence on title.
• Properties adversely affected by heritage, environmental or planning issues.
• Properties evidenced by stratum/company share titles.
• Properties which are unique or unusual in character or construction, or with over-capitalised improvements.
• Properties affected by high-tension power lines, frequent flooding (or flood zoning), traffic abnormalities and industrial sites.
• Properties in poor condition.
• Combination shop/residence.
• Inner city high rise conversions.
• High density apartments (within a block of five or more stories and/or 30 or more apartments), where the LVR is greater than 80%.
• Off-the-plan properties.
• Display homes.
• Multiple residential security properties located within any given recently completed development, where the borrower has been responsible for, or associated with, the development.

General provisions

• A valuation report, prepared by a trustee approved panel valuer, must accompany each application.
• The valuation report must include comparable sales evidence within the last 90 days. This sales evidence must not be within the same complex.
• The valuation report must confirm that the property is readily saleable with no adverse features.
• The valuation report must be no more than 90 days old at settlement.
  Where the valuation is older than the required number of days, an updated report is required prior to settlement.
• The trustee requires the original copy of the valuation report, including colour photograph, prior to settlement.

General provisions primary applicants

• Applicants must be self-employed or full time investors, which have been in business for at least two years. This includes family trusts, property holding and trading companies.
• Any applicant who derives income as a salaried employee is not deemed to be self-employed.
• Self-employed borrowers must disclose on declaration form at least two years self-employment.
• Third party mortgages are specifically excluded. Exceptions apply in the instance of married couples or current defacto relationships.

General provisions joint applicants (co-borrowers)

• The number of PAYG applicants must not exceed the number of self-employed applicants.
• Any PAYG co-borrower must provide income verification documents.
• Applicants drawing a salary from their own company are not considered PAYG.

• A copy of the Contract of Sale (executed by all parties) must be provided.

• Satisfactory loan repayment history is required. There must be no evidence of arrears, default interest, property dishonoured repayments or exceeded credit limits.
• Loan statements (on all loans being refinanced) must be provided for the last six months.

• A supporting guarantee of a company is not required where the director(s) is borrowing for private use.
• The trustee reserves its right to request a guarantee at any time.

• Consumer and commercial credit reports are required for all parties to any transaction.
• Credit reports and ASIC on-line reports must also be provided for all corporate entities or proprietorships as listed on any consumer or commercial credit report.
• Unpaid defaults, judgements, companies under external administration, petitions or winding up action will automatically disqualify the application.
• Applicants who have one paid default of not more than $500 may be accepted, provided that the default has been paid and confirmation of payment is listed on the credit report.
• Credit reports must be current at the time of application and be no older than 21 days at submission.

• An early repayment fee is payable where the loan facility (or split) is repaid in full and closed in the first 5 years.
• Any early repayment penalty payable is calculated per loan split (not total facility).

• The trustee will consider a request to reduce an interest rate for the borrower subject to all borrowers providing current financial information and taxation returns. This information must comply with the trustee’s lending criteria.

Documents to be completed by the applicant(s)

• Application form containing:
  • Completed asset and liability statement, including equity to complete this transaction;
  • Stated self-employed, business or investment income (income verification documents not required);
  • Stated PAYG income for co-applicants (income verification documents must be provided);
  • Loan Purpose Checklist – which advises the intended use of the funds;
  • Lo Doc Declaration of Financial Position – declaring that the loan amount applied for is within the applicants’ ability and capacity to meet their repayments;
  • Declaration of Purpose (non-UCCC regulated only);
  • 100 Point Identification form;
  • Privacy Act Consent form (in trustee’s approved format).
• Loan applications showing income levels that appear to be inappropriate, having regard to the applicant’s assets position, are likely to be declined (e.g. a stated rental income of $40,000 from a property valued at $200,000).

Documents to be provided with all applications

• Completed Application form;
• Lo Doc Declaration of Financial Position;
• Declaration of Purpose (non-UCCC regulated only);
• Lo Doc Program Credit Package Checklist;
• Income verification for PAYG applicants;
• Income and Employment Verification form;
• Purchases – Copy of executed Contract of Sale or Certificate of Title;
• Refinances – Satisfactory conduct of any loan being refinanced;
• Refinances – Executed Discharge Authority;