Calculating my income

Hi All!!
Long time lurker, first time poster.

I am trying to calculate my annual self employed income for a home loan.

My company has 3 shareholders. The 3 shareholding is split 40/40/20. I owe one of the 40% shareholding. I pay myself a regular wage but I also get 40% of the net profit.

Is my income as simple as taking 40% of the net profits + my regular wage = my annual income?

Dave

 

basically it is.

 

Pheww Lucky I thought I wasn’t allowed to use the net profit because i don’t have 60% ownership

 

Just as an added addition, most lenders will require 2 years financials.

 

Good to know. I have about 3.5 years. Thank you

 

Strongly recommend you have a banker or broker assess this and provide you with the correct figure - it may be a bit more complicated that the above.

Does the company have debts? If so some lenders will factor this debt into the personal liabilities position and some will not. Are there any add backs that may be included such as depreciation, etc? Will that lender accept add backs? Is the profit company retained or paid to you as dividends? Some lenders will not use company retained profits if you are not more than 50% owner of the company.

 

Suggest you get a good broker ASAP
Company profits if not distributed to you each year are unlikely to be used towards your income for serviceability calculations

 

Yeah the company doesn’t have any debt, but quiet a bit of retained profits. Is there lenders in the market that would just take my regular payments plus the 40% retained profits?income?

 

Yes