[Self employed] Banks scrutinising current income in addition to 2 years' financials

Discussion in 'Loans & Mortgage Brokers' started by kacheek, 20th Mar, 2021.

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  1. kacheek

    kacheek Well-Known Member

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    Hi, I'm self employed with 3 years history of good income, however my current client contract is coming to an end and I don't have work lined up for a little while (even though I'm confident it will happen fairly soon).

    Are there any banks who will just accept last financial year's documents and not look into my current situation?
     
    kacheek, 20th Mar, 2021
    #1
  2. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    Different banks ask for different things with self employed, but they will ask for 1 of the following 3.

    - latest year financial
    -lastest years financials plus last 2 BAS
    - Last 2 years financials

    Some may ask for an accountants letter as well.
     
    Tony Xia, 20th Mar, 2021
    #2
  3. Redom

    Redom Mortgage Broker Business Plus Member

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    Yes there’s some options in this space depending how the figures look.

    May be able to get via some fast track assessments (ie less docs) depending on what your NOA looks like.

    More and moving away from requirement for bas’s now given corona situation is better (this was temporary)
     
    Redom, 20th Mar, 2021
    #3
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    PAYG or ABN contract pls ?

    ta
    rolf
     
    Rolf Latham, 20th Mar, 2021
    #4
  5. kacheek

    kacheek Well-Known Member

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    Self employed Pty Ltd. My mortgage broker is telling me some banks are doing additional verifications on income due to COVID to make sure I am still earning money, ON TOP OF the two years financials I submit. Are there any banks who don't do this?
     
    kacheek, 20th Mar, 2021
    #5
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    objectivley its a loan I wouldnt write personally.

    If it went pear shaped the first line of attack for the ambo chasing lawyer would be the broker for non disclosure of known events

    High risk strategy for the borrower as well if the lender does a pre settlement enquiry.

    Small risk, but its not zero

    ta

    rolf
     
    Rolf Latham, 20th Mar, 2021
    #6
    Tony Xia, Lindsay_W and Morgs like this.
  7. Lindsay_W

    Lindsay_W Well-Known Member

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    What if it doesn't happen? What then?
     
    Lindsay_W, 20th Mar, 2021
    #7