We are asked frequently “Do you do low-doc?” ‘Low-doc’ is a term most referred to in the consumer lending space. It used to refer to self-certified income declarations or a looser approach to income verification for serviceability purposes.
There is a paradox in the private lending space, the bigger you get, the higher the anticipation that you will need more detailed proofs. This is a fallacy. In the private lending space, all loans are ‘low-doc’ under the above nomenclature.
As private lenders, Semper Capital provides two types of loans:
- Exit-centric facilities such as a bridging pending sale or refinance
- Renewable term loans.
What separates Semper Capital from APRA-regulated lending institutions is our ability to build the interest component into the principal sum of the loan for a prescribed term. We can also take a projection approach to future serviceability. Therefore, we are certainly able to take a low-doc approach in the true sense of assessing serviceability.
We can take on a wide range of risk at Semper Capital. We can do high-LVR and no and low-income loans. Provided the borrower can prove a benefit by borrowing. However, we are not the type of lender to rush to recovery, we believe in working loans out rather than taking possession.
Call us today to discuss any loan scenario. If it makes sense for the borrower, and if there is sufficient equity to cover the loan term, we will do it – every time!