Low doc commercial loan

A flexible commercial loan solution designed for self-employed borrowers. Purchase or refinance your commercial property with our low doc loan for investors and business owner-occupiers.

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What is a low doc commercial loan?

If you don’t have the traditional documents needed for a bank loan, it can feel like your commercial property goals are out of reach.

A low doc commercial loan is a mortgage for business premises tailored for self-employed customers. As a non-bank lender, Yard can take a more personalised approach to loan approvals, which includes alternative income verification options for self employed applicants. If you do not have tax returns available, we can look to use alternative income verification, such as a letter from your accountant or Business Activity Statements (BAS).

Just like a regular mortgage, the low doc commercial loan needs to be secured against a 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 low doc commercial loan be used for

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

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

Purchase a commercial property as an owner-occupied to support the operations of your own business

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

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

Explore our low doc commercial loan features

Alternative income verification

Letter from accountant or Business Activity Statements (BAS)

Interest only options

You can pay only the interest on your loan for
up to 5 years

3-30 year loan terms

Long loan terms for up to 30 years

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

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

Acceptable commercial properties are properties that are used for business purposes. This includes owner-occupier and tenanted properties. 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 low 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 low doc commercial loan?

A low doc commercial property loan is a mortgage for your business premises. It can be used for funding a commercial property purchase, refinancing an existing commercial loan, buying new equipment or financing other business activities.

Our low doc commercial loan works in a similar way to a normal full doc commercial loan. It can be extended for a loan term up to 30 years. You can choose between Principal & Interest or Interest Only repayments. You can also select loan features such as split accounts or an offset facility.

The key difference is that low documentation (low doc) or alternative documentation (alt doc) loans are a way to acquire loans for people with income and assets, but without the regular ways to prove this. With a low doc loan you can use an accountant declaration, BAS or bank statements to evidence your income instead of tax returns.

What documents are needed for a low doc commercial loan?

We can use an accountant declaration, 6 months of Business Activity Statements (BAS) or transaction statements. We would also require standard loan documents such as identity documents, contract of sale for purchases or rental income statements if the property is already rented.

What is the interest rate for low doc commercial loans?

The interest rates for low doc commercial loans vary based on several factors including loan-to-value ratio (LVR), the type and location of property and the financial strength of the borrower. Yard is a non-bank lender that specialises in low doc loans and offers competitive interest rates. In general, low doc loans have a higher interest rate than normal full doc loans as alternative documentation is used for income verification.

How much of a deposit is needed for a low doc commercial loan?

Yard can provide low doc commercial property loans with 20% deposit up to 80% 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.

How much can I borrow to buy a commercial property?

Yard completes a serviceability test to determine how much you can borrow for a commercial property. To estimate this, we would review your income, expenses, and existing loan commitments. You also need to demonstrate that you have sufficient assets to provide a 20% deposit.

What is the maximum term for a low doc commercial property loan?

Yard can provide commercial property loans with a term of up to 30 years.

How is a commercial property loan different to residential?

The key difference between a commercial property loan and a residential loan is the property type and loan objective.

Property type:
    •   Residential mortgages are used for financing properties where the borrower intends to reside, such as houses or apartments.
    •   Commercial mortgages are designed for commercial properties used for business purposes, including office spaces, warehouses, retail shops, etc.

Loan objective:
    •   Residential Mortgages are primarily used for personal housing needs
    •   Commercial Mortgages are used for business purposes, such as acquiring income-generating commercial properties for investment or the borrower’s own business operations

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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