La Trobe Financial lending policy depends on the facility: ordinary Residential Lite Doc uses alternative income evidence and ongoing repayment capacity. Its published residential term sheet lists 0.50% upfront, 0.25% trail and nil commission clawback. Those terms belong to that lending category, while your distribution agreement determines the payment you receive.
For a self-employed borrower refinancing an Australian residential property, start with the Residential Lite Doc pathway. Keep commercial property, international borrowers and short-term exit lending in their respective product categories. The lender policy directory helps you compare another lender’s requirements for the same file.
Remuneration for the Chosen Facility
La Trobe Financial’s residential lending term sheet publishes 0.50% upfront and 0.25% trail for Residential Full Doc and Lite Doc. Its Broker Product Guide describes accreditation through your aggregator. Record the selected product and distribution channel alongside the settlement reference.
Keep the published lender rate separate from your net commission after the aggregator’s share or fees. Use the payment agreement’s eligible balance when reconciling a statement. Do not automatically calculate trail on the approved limit or assume redraw and undrawn funds earn commission.
Your reconciliation needs the funded amount, commission basis and GST treatment from the applicable payment terms. Match those fields to the statement’s upfront and trail entries. A difference in the balance used can explain a payment difference even when the percentage matches.
Clawback and Refinance Timeline
The residential term sheet states nil commission clawback, so it supplies no early-discharge recovery window for that published commission structure. A borrower exit fee is a separate charge. The Residential Lite Doc target market determination says early repayment fees can apply within the first five years.
For a refinance, compare the original loan’s payment agreement with the proposed facility. A nil-clawback La Trobe loan does not remove another lender’s recovery rule when the borrower leaves that lender.
| Change | Commission history to retain | Assessment before proceeding |
|---|---|---|
| Internal replacement | Original settlement and upfront payment, plus the replacement reference | Establish whether the existing account continues or closes, and which written replacement terms apply |
| External refinance | Original loan’s discharge and the new lender’s settlement | Apply the outgoing loan’s recovery terms separately from the incoming lender’s commission |
| Top-up | Original balance and the additional advance | Establish which amount qualifies for additional upfront and whether trail follows the revised balance |
| Split facilities | Each split’s settlement reference and payment entries | Reconcile each account without counting the same advance twice |
In a hypothetical refinance, the outgoing lender recovers part of its upfront while the new La Trobe residential loan has nil clawback. Record each outcome against its own loan. Adding the new settlement does not erase the outgoing recovery.
Income Verification and Applicant Entities
Residential Lite Doc accepts alternative evidence of income, while Full Doc suits income that can be fully verified. La Trobe Financial’s self-employed loan page lists accountant letters, trading statements and Business Activity Statements (BAS) for Lite Doc.
The residential term sheet’s checklist combines a borrower repayment declaration with an accountant’s letter, 12 months of BAS or 12 months of trading statements. Its Full Doc pathway lists two payslips with an employment letter or contract, or the last two years’ financials and tax assessment notices.
The Lite Doc target market determination includes Australian-incorporated companies and trustees of Australian-domiciled trusts, subject to lending criteria. Identify the borrower separately from the business producing the income. For a trust, show which trustee borrows and how the income reaches the proposed repayments.
For example, a director’s personal application and a company application can use evidence from the same business. The applicant, liabilities and legal ownership still differ. Explain those relationships in the submission instead of treating the business name as the borrower.
Residency and Ownership
The Residential Lite Doc target market identifies individuals living in Australia with Australian residency or citizenship. A visa label alone does not establish that a particular application meets this product’s criteria.
Record each applicant’s citizenship, residence and visa status where relevant. Show the proposed registered owners and whether the borrower acts personally or as trustee. Where borrowers have different statuses, describe each person’s role and contribution to repayment.
La Trobe Financial’s international borrower term sheet separates non-resident loans from loans for Australian citizens living or working abroad. Both use Full Doc income verification and acceptable-country requirements. Do not carry the domestic Lite Doc evidence pathway into an international application.
Security and Purpose Boundaries
Residential Lite Doc uses Australian residential security, including a separate rural residential category. The target market determination distinguishes a residential dwelling, generally below 25 acres, from rural lifestyle security typically spanning 25 to 100 acres.
The proposed use of funds and the property type are separate questions. A loan secured by a home can fund a business purpose without turning the home into commercial security. Describe the cash-out purpose and the actual security independently.
La Trobe Financial’s Commercial Lite Doc page covers commercial properties such as shops, offices and warehouses. A commercial property requires that facility’s assessment even when the applicant’s income evidence resembles the residential file.
For an unusual property, provide the address and land area, then explain its permitted use and actual occupation. Calculate the loan-to-value ratio (LVR) using the valuation and proposed debt. A residential description in the application cannot resolve a valuation that identifies commercial use.
Repayment or Exit Evidence
Ordinary Residential Lite Doc requires income that supports ongoing repayments. Its target market determination makes repayment capacity subject to credit assessment. A possible future sale does not replace that assessment.
For the selected refinance, the residential checklist includes existing account statements, the application and verification of identity. Tie the income evidence to the requested repayment structure. Include the debts being repaid and explain any funds the borrower retains.
An interest-only period still needs a repayment proposal. The self-employed loan page describes interest-only periods of up to five years reverting to principal and interest. Show how the borrower meets the repayments after that period as well as during it.
If the proposal depends on a sale or another exit to repay the debt, identify the appropriate specialist facility before preparing its evidence. Specify the asset being sold and expected net proceeds, with evidence supporting timing and the debt that remains. Keep that proposal separate from the ordinary residential repayment-capacity scenario.
Credit Submission and Exceptions
An exception request needs the exact departure from La Trobe Financial’s selected product criteria and evidence explaining why the file can repay. Name the requested decision instead of asking for general flexibility.
Include the following facts so credit can assess the request:
- The selected product, loan amount, purpose and proposed repayment structure.
- Each applicant’s legal entity and ownership role, with residence or visa details where relevant.
- Income amounts and their evidence, plus the business or employer producing them.
- Property address, land area, use and valuation, with the proposed LVR.
- Existing facilities being repaid, repayment history and any top-up or split arrangement.
- The particular policy departure and supporting documents that address it.
Use the La Trobe Financial broker enquiry routes to send the scenario to the relevant lending team. Retain the written response against the submitted facts. If the security, applicant or repayment proposal changes, send the changed facts for a new decision before relying on the earlier response.
