Low-doc loans salvage property developers
Low doc loans are now helping some property developers refinance loans from more cautious lenders. Austmortgage said that there was a surge in enquiries from developers wanting loans with less need to establish the financial credentials of the borrower. Project finance director Baxter Gamble said that the proportion of low doc loans arranged by the firm was now up to 50 per cent of all loans, up from about 10 per cent three years ago. He said that one Queensland developer avoided selling a 24 unit development at a loss with a low doc loan. The client had “no financials, and documentation was all but invisible”, he said. But Gamble still organised a complex loan through an unidentified lender.