Self employed lending

Discussion in 'Loans & Mortgage Brokers' started by Nath, 23rd May, 2022.

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  1. Nath

    Nath Active Member

    Joined:
    18th May, 2018
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    Location:
    sydney
    Hello, can anyone please advise on going down the low doc road side of lending and the requirements?

    How many BAS statements required if paying GST?

    What about if not registered for GST much of a different outcome?

    appreciate the insight

    thank you
     
  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    18th Jun, 2015
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    Location:
    03 9877 3000
    Generally you'll need 4 BAS statements supporting the income that you've stated in the application.

    If you're not registered for GST, you're going to have trouble getting a lo doc loan. There are some lenders that will accept an accountants letter and/or 12 months of trading statements to verify your income.

    Realistically a business would need to earn more than $80k to qualify for any loan of a significant amount so you should be registered for GST. There are a few exceptions, but not many.
     
    Last edited: 24th May, 2022
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  3. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

    Joined:
    23rd Aug, 2015
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    Location:
    Bella Vista
    Theres different ways that lo doc can be used

    - BAS statements - 2 quarters from memory
    - accountants letter
    - 12 months revenue credits.
     
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  4. Nath

    Nath Active Member

    Joined:
    18th May, 2018
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    Location:
    sydney
    Thanks gents much appreciated
     
  5. beachgurl

    beachgurl Well-Known Member

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    Location:
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    2 of 6 months Bas, business banking statements and accountant letter, whether GST registered or not will give rates that compare to the big banks. Using only 1 of those, or a shorter gst registration can be done but at higher interest rates. If not GST registered then can't self declare over 75k but may assist if the self employed person is the secondary income earner and you need the extra borrowing power.
     
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