The type of alternative documentation you provide has a direct impact on the maximum LVR a lender will offer. Stronger documentation means the lender takes on less risk, which means they will lend a higher percentage of the property value.
BAS-verified applications attract the highest LVR limits - up to 80% with some lenders. BAS statements provide the lender with ATO-verified turnover data, which gives them a high degree of confidence in your income declaration.
Bank statement only applications typically cap at 60-70% LVR. Without BAS or accountant verification, lenders take a more conservative approach. The trade-off is that bank statements are the easiest documentation to provide.
Accountant letter or declaration applications generally fall in the 60-70% range, though some lenders will go higher when the accountant provides detailed income verification.
Combination documentation - such as BAS plus bank statements - can sometimes achieve up to 80% LVR, as the lender has multiple data points to cross-reference your income.
Owner-occupied properties generally attract higher LVR limits than investment properties. Most low doc investment loans cap at 70-75% LVR, regardless of documentation type.
Jason and Steve are Adelaide mortgage brokers who give honest advice at no cost to you. No obligation.
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