Every business goes through good times and bad, as many Aussie business owners know. Often bad years can be mixed in with good years of higher profits. This is especially true of new businesses. Many businesses start slow, but grow and have better cash flow, as it strengthens.
When business improves, it can seem like an opportune time to buy a new property. If you own a property already, you might think that you’re in the perfect position to take cash out of your existing loan as a deposit for your next property. But many lenders don’t look favourably on relatively sudden increases in income when you apply for cash out.
The same can happen if you’ve received a new work contract where you’re earning more. Your higher incomes puts you in a better financial position. But many lenders still won’t be willing to let you get cash out of your existing mortgage.
These lenders will only consider approving your application if you wait a year or two, so you have tax returns showing this higher income or profits.
Low doc cash out options
In these situations, a low doc refinance with cash out might be a suitable option. A low doc loan requires far less in the way of financials and documentation.
Lenders who provide low doc loans with cash out can be willing to overlook previous years of low profits, if you’re a business owner.
Getting cash out using a low doc loan means not having to wait another year or two before you get the funds for a deposit on your next property. This can put you in a position to enjoy your time looking for your ideal property.
Alternatively, you could use the funds to carry out renovations on your existing property. The choice is yours.
So how do I get a low doc loan with cash out?
If you’re in a situation where your profits or income have recently increased and you want cash out, Bee Finance Savvy can help. Our extensive lender panel will allow us to pair you with a lender best suited to your unique needs and situation.
We’ll provide you with an upfront assessment of your situation, completely obligation free. During this consultation, our Sutherland Shire based broker Desiree will assess your circumstances carefully, to ascertain your options. Desiree will then go over these options with you.
Should you wish to proceed, we will only submit an application for you when we’re confident of a successful approval. This avoids the pitfall of getting too many unnecessary marks on your credit file, which can be very damaging.
To find out more, or to have an obligation free consult, call Desiree on 1300 140 554 or 0455 131 937. You can also email her at firstname.lastname@example.org .