Citi's Lite Doc offers a great alternative to traditional Lo Doc lending. We think it should be considered for clients who fall into categories such as:-

Looking at borrowing options as self-employed client?

Last year's Tax returns not completed?

Had significant cash flow increase from previous year?

Traditional Low- Doc rates not competitive?

Consolidating Business debt as Resi Rates?

Requirements:

Satisfactory Equifax on individual applicants

Valid ABN required for minimum 24 months

Business Income Documentation:

12 months profit and loss statements (P&L) taken from management accounts of business (MYOB) with end date no more than 6 months prior to application date, must be signed by all applicants/ guarantors

Business Activity Statements (BAS) covering all four quarters of the P&L above, plus any subsequent BAS

Or

The most recent year of tax returns as per the Standard Documentation Requirements for self-employed applicants, along with an ATO Notice of Assessment.

Group Certificates for all wages paid to Directors

Evidence of any other income, (spouses wages, rental statement, evidence of investment, interest received or dividend income)

Conditions:

10% Reduction on normal LVR's

Vacant land or construction loans are not permitted

Trust income cannot be used in capacity test

Refinance of ATO debts is not acceptable

No additional interest rate loading, same low interest rate and products as for full doc loan <80%. No LMI applicable

Serviceability

4 quarters BAS gross sales are consistent with Gross sales in Profit and Loss

Net profit + addbacks + wages (verified from Group certificate)

All other income (spouses wages, rental, investment, dividends etc. – not included in above