Low-Doc Lending Consolidates $1.45M of Debt

The Borrower

Client — “Tracy”

Self-employed business owner, early 50s

Debt

~$1.45M total

Position

Credit affected by a difficult personal period

The Objective

• Bring ~$1.45M of debt under control and simplify repayments.
• Stop the deterioration in credit and stabilise cash flow.
• Return to a mainstream full-doc lender once FY26 income was proven.

The Challenge

FY25 statements showed only ~$20,000 net profit against ~$1.45M of debt, so a full-doc application looked very weak. FY26 had improved sharply, but those returns weren’t yet finalised.

What They’d Tried

A prior broker had proposed private lending at very high rates and risk fees. On the client’s account, she was also told she could stop her existing home-loan repayments during a refinance — leaving ~3 months of missed repayments. That advice couldn’t be independently verified; existing repayments should always continue while a refinance is in progress.

What We Identified

Low-doc evidence — a self-declaration plus bank statements — supported income of just under ~$400,000, a very different picture from the ~$20,000 FY25 figure.

The Solution

• Specialist low-doc refinance through Pepper (~9.34%).
• The rate reflected the low-doc, credit history and recent missed repayments.
• Even so, the structure reduced overall monthly repayments.

The Result

Repayments fell from ~$12,200 to ~$11,500 a month, inside a much simpler structure.

What Happens Next

This is a ~12-month recovery plan: steady repayments, complete the FY26 financials, then move to full-doc mainstream lending at a lower rate.

Why It Matters

A temporary specialist structure can hold the line while credit and financials recover — and existing repayments must never stop during a refinance.