Lease doc commercial loan

A flexible commercial loan solution designed for commercial property investors. Purchase or refinance your tenanted commercial property with our lease doc loan.

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What is a lease doc commercial loan?

A lease doc loan with Yard takes a simplified approach to loan serviceability assessment by reducing the documentation that you need to provide with your commercial lending application. Under a lease doc commercial loan, the rental income on the lease agreement is used to support the loan application.

The lease doc commercial loan is secured against a commercial property and can be for a loan term period of up to 30 years. The loan can be Principal & Interest or Interest Only and have useful features such as additional repayments, redraw or an offset facility.

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What can a lease doc commercial loan be used for

Purchase a commercial property as an investment to grow your property portfolio

Renovate or fit out a commercial property (non-structural improvements only)

Refinance an existing commercial property loan to obtain a better interest rate, renew an expired loan term or obtain specific loan features

Consolidate business or commercial debt, e.g. business credit cards, unsecured loans for business, etc

Explore our lease doc commercial loan features

Simplified income assessment

Loan serviceability assessment is tested against the property lease income only

No annual reviews

No annual reviews or valuations

Loan amounts up to $3 million

Maximum loan amounts vary based on property type and product option

Additional repayments

You can pay your loan faster by making additional repayments

Interest only repayment

Interest Only loan terms of up to 5 years

What property can you accept as a security for the lease doc loan?

Acceptable commercial properties are properties that are used for business purposes and have a lease agreement in place. Commercial properties we can lend against include:

Strata Offices & Showrooms (minimum floor area of 50 m2)

Retail outlets (e.g. shops, restaurants)

Industrial Units/Factories/Warehouses/Workshops

Mixed Residential & Commercial Use

Medical/Dental Suites

Childcare Centres

Serviced Apartments

Student Accommodation

How to apply for a lease doc commercial loan

Start your application

Apply online with our easy online home loan application. A dedicated Loan Consultant will give you a call to discuss your home loan requirements and help find the best solution for you.

Provide your supporting documentation

We verify your information by receiving some supporting documentation, e.g. accountant letter, BAS or bank statements. We also perform a valuation on your property.

We assess your application

Our credit team reviews your information and makes an assessment on your application.

Your loan documents and settlement

Our solicitors send you the loan contract via email. When it is time for settlement, our solicitors will work with your solicitor (for a purchase) or current lender (for a refinance) to settle your home loan!

Frequently asked questions

What is a lease doc commercial loan?

A commercial lease doc loan is a mortgage product where a different approach is used to calculate whether the borrower can afford to repay the loan. This approach involves using the lease (rental) income from a commercial property to service the debt on the proposed property on a standalone basis. If the rental income exceeds the interest repayments over a 12-month period, then it is possible to obtain a loan approval without providing additional financial information. This means that loan applicants will not be required to provide an outline of their full income, expenses, assets and liabilities position.

How does a lease doc loan work?

A lease doc loan could be suitable for investors with rent producing commercial properties. The lease doc method assesses the ability to repay the loan (also known as a serviceability test) based upon the commercial property rental income only. This loan is available only for commercial properties and there must be a minimum period of 12 months remaining on the commercial lease.

What is the interest rate for a lease doc commercial loan?

Yard’s lease doc commercial property loans have interest rates starting from 8.29% p.a. Your interest rate will depend on the size of your deposit (LVR), the location of the property and your credit profile.

Is there a limit to how much I can borrow on a lease doc commercial loan?

Yard is a non-bank lender that specialises in lease doc loans. The maximum lease doc loan amount we can provide against a commercial property is $3,000,000.

When is a lease doc commercial loan appropriate?

A lease doc commercial loan could be a great solution for borrowers with rent producing commercial properties looking for a simplified loan application process. To qualify for a lease doc loan, the rent of the property needs to exceed the interest repayments on the loan. The property needs to also have 12-months minimum remaining term on the lease.

How much deposit do you need for a commercial lease doc loan?

Yard can provide lease doc commercial property loans with 30% deposit up to 70% LVR for a new purchase or a refinance of an existing loan. The deposit requirement could vary based on the location and type of property used as a security for the loan.

Do you require annual reviews on your lease doc loan?

Yard's lease doc loan does not require annual reviews or valuations.

The important questions answered

Are there any application fees?

With the Yard Home Loan, you can achieve your goals:
•  Purchase a new home or investment property
•  Refinance to save money
•  Take cash out for a personal or investment use (e.g. renovate, have a holiday)
•  Consolidate debts to a cheaper rate into your home loan
•  Release equity

What loan amount does Yard lend?

We can accept the following property types:
•  Houses, apartments and town houses
•  Rural residential and hobby farms
•  Off-the-plan purchases

Can I make additional repayments?

Yes, we can lend to applicants who are employed (PAYG) as well as self-employed. For self-employed borrowers, we typically require 2 years of trading history under the same ABN. Professionals (e.g. Doctors, Lawyers, Accountants, IT Professionals) who have recently become self-employed and have traded under an ABN for at least 6 months can be considered.

How much can I borrow against my home?

Yes, Yard provides vacant land and construction loans.

How long do I have to repay?

Click ‘Apply now’ - it takes as little as 15 minutes to provide Yard with information about your home, your finances and how much you'd like to borrow. You can also select to make an appointment with a Loan Consultant to discuss your requirements at a time that suits you by clicking on ‘Talk to an expert’. We'll contact you via email or phone to discuss your application. This is your opportunity to ask us questions and design your loan. Once you're comfortable a Yard loan is right for you, simply provide the required documents for assessment via our document portal. If successful, we'll arrange the loan.

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