I have deposit, but can't prove to the bank

Lenders are far smarter these days. And so they should. To stop this or blatant fraud. The times I hear someone say ...I earn 1mil as a builder...but make 100k profit...oh that's 55k after tax.

The ATO do betterment loan reviews from time to time. Taxpayer has a 1m loan on a 1.5m property but earns 100k. Expect issues. Any fool can tell the income can't service the debt

 

Lo doc loan seems to be an option for you ...

 

Financed too....It shows they can repay the high loan amount doesnt it ? A porsche cayenne and a MB for the wife. Kids at private schools, new pool. But a taxreturn that says our family income is $79,000

The ATO did a lodoc review years back and the correlation was scary. 90%+ of lodoc borrowers were repaying loans with reported taxable incomes a fraction of the amount needed to make the repayments. The sources of income to make repayments were largely unreported income, cash and schemes such as division 7a breaches and spouse splitting etc. What the Govt should do is not tinker with tax laws. Just make the mortgage unenforceable under consumer credit laws if the locdoc income reported is not consistent with actual earnings so the lenders suffer a loss. Watch it change overnight.

One of the reasons why we have to be tight now when asked to confirm client incomes. If its not on a BAS its not on my letter. Had one not too far back who told his broker he was a developer and stood to make $700K. Yep he was going to sell one of two townhouses for $700K. After GST and costs there was a loss. The broker was looking for everyway for me to lie by rewording the proposed letter and I refused. He was concerned he had to retract what he told the bank and the client wouldnt get their loan.

Plenty of dishonest people out there including accountants : i've asked my accountant to ensure this year's financials show us earning more ....said the OP

 

I recall many years ago one of my friends got a please explain letter from the child support agency about his income. They had copies of his recent loan application with a lender, which was a low doc loan, where his declared income was much higher than his taxable income. Not sure what happened with it.