Lease Doc Loans Made Simple: How to Finance Your Commercial Property with Confidence

What Is a Lease Doc Loan?

A Lease Doc Loan is designed for borrowers who prefer simplicity and speed. By basing loan eligibility on lease agreements and income from tenants, lenders can approve finance without needing full financial disclosure. These loans are particularly popular among:

1. Self-employed individuals with complex business structures
2. Trusts, busineeses and passive commercial investors
3. Commercial tenants seeking to purchase their leased premises

Key Features of Lease Doc Finance

1. Lease-Based Assessment: Tenant reliability, lease length, and rental income are the core approval factors
2. Minimal Documentation: No need for full tax returns or detailed financials
3. Eligible Properties: Commercial only — including offices, retail spaces, and light industrial assets
4. Flexible Loan Terms: Matched to the Lease term (remaining), Interest-Only options available (typically 1–5 years)
5. Interest Cover Ratio (ICR): Rental income must be at least 1.2× the loan’s annual interest obligations. ICR level differs from lender to lender.
6. Max LVR: Major banks up to 65%. Others up to 75% for loans under $3M; 70% for higher amounts

Example Scenario: How Lease Doc Lending Works

Imagine you're applying for a $500,000 Lease Doc Loan with an interest rate of 5.39% p.a.

1. Annual Interest Expense: $500,000 × 5.39% = $26,950
2. Required Lease Income: $26,950 × 1.2 = $32,340
3. Actual Lease Income: $35,000 annually

In this case, your Interest Cover Ratio (ICR) is 1.3x, meaning you meet the loan servicing requirement.

🔎 Use our Lease Doc Loan Calculator at leasedocloan.com.au to run your own scenarios and determine eligibility in seconds.

Lease Terms and Loan Structuring

The remaining term of your lease plays a crucial role in shaping your loan. Some lenders allow for longer loan terms when renewal options are in place. Generally:

1. Lease must have at least 12 months remaining
2. Longer leases enable longer term
3. Renewal clauses may boost term flexibility
4. When lease renews and provided, the loan can rollover for another term matching the new lease term.

Who Benefits Most from Lease Doc Loans?

1. Commercial property investors with existing tenants
2. Self-employed borrowers without conventional financials
3. Trusts seeking simpler finance options
4. Buyers of leased commercial assets with stable income

Important Considerations

1. Interest rates may be slightly higher than full-doc loans due to the reduced paperwork
2. Lenders evaluate tenant strength and lease duration carefully
3. Loan features and criteria vary between lenders — comparison is key

💬 Need answers? Visit our detailed FAQ section at leasedocloan.com.au for common questions on Lease Doc eligibility, structuring leases, and calculating LVR.

Ready to Get Started?

If you’ve got a quality lease and a well-tenanted commercial property, Lease Doc Loans could unlock your next big investment — no paperwork overload required. Run your numbers with our calculator, explore the FAQs, or speak with a specialist broker to discover your options.