PAYG Income only

Hi All,

Was wondering if the experts on this forum will be able to guide me.
Both me and my wife are PAYG and I am also a director of a company with my friend for a business ( small takeaway).

I am looking to buy an Investment property( already have my OO and 2 IP's recently refinanced with Westpac). My and my wife's income is good and will allow us to borrow upto $700k (with healthy surplus) without any issues, however my company made a loss of $100k( 2018-19) ( even the 2019-20 is likely to have loss of about $60k- not yet lodged) and therefore my broker is saying that this will be picked up by the banks as a part of CCR and they would want company's financials even if we are not using it for servicing the loan. He says the bank will reduce my income based on the net loss and my share of the company.

What I want to know is to get second opinion from the experts on this forum
1) Will all banks still want to see my company's performance even if I am applying as a PAYG?
2) Is there any bank that doesn't run CCR or won't ask for companies returns and only approve loan based on our personal income?
3) Can there be any explanation given to the bank to get over this issue?

Thanks

 

All lenders are going to run a credit report and will likely pick up that you're a director of this business. There may be a way around it though.

Have sent you a private message.

 

Hi Rolf
No there is no cash cover as we purchased the business in July 2018. The loss is mainly due to operating expenses and rent for the premises and some minor $12k of depreciation.

 

Consider resigning as director? But many other issues

 

Hi Terry
I was under the impression that the bank will still want to see the company details.

Can U explain what other issues?

 

control is the most important.
If you resign as director it should show up as a past directorship on the credit report. They might ask about it, and might be concerned about residual liability. Best to plan for this with your broker.

 

Thanks Terry.

 

Sounds like all lenders would want to know what's the status of my company financially despite the PAYG Income sufficient to service the loan.