Business Income for servicing

Discussion in 'Loans & Mortgage Brokers' started by gach2, 4th Mar, 2020.

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  1. gach2

    gach2 Well-Known Member

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    From what i have been told business income (sole trader etc) can be included for servicing but generally would require a NOA to prove income and usually expected for 2 yrs.

    Just had a look at my NOA and there is no reference to business/PAYG/CGT
    Just has taxable income

    Is there something im missing out on?
     
  2. D.T.

    D.T. Specialist Property Manager Business Member

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    Did you not declare it last time?
     
  3. Brady

    Brady Well-Known Member

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    Tax return will show what/where the income was. It will determine taxable income. NOA will confirm this.
    NOA only shows taxable income, this will be PAY/rent/investment etc less all deductions ....
     
  4. gach2

    gach2 Well-Known Member

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    I think may have been advised wrongly (in relations to terms)

    So ITR is what banks would be looking at?
    Not the NOAA themselves when figuring out income for servicing (obviously the ITR and NOA would have to match)
     
  5. Brady

    Brady Well-Known Member

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    Correct they will want to see ITR, this will tell the details.
    This is lodged to the ATO
    The ATO then provides the NOA which is confirmation.
    They need to match.
    Alone they're pretty useless, but in saying that previously was pretty easy to get a loan solely from a NOA.
     
  6. Peter Pakarinen

    Peter Pakarinen Member

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    Sole trader is not like a company. All business income will appear under your name, with any other payg work you might do. The NOA as mentioned will be provided once the returns have been lodged. PS: before you can use your business income you must have an ABN that has been registered for 2 years. Lender will also prefer a full 2 years returns. Some lender may look at 12 months full financials. Unless you go to a specialty lender like Pepper / Liberty.