Normally, self employed applicants need to supply financials and tax returns for the past two years for both the company/partnership, plus personal tax returns. What tends to happen though is that the tax returns haven’t been prepared for any number of reasons or the income may be seasonal or irregular.

The solution is a Low Document Loan, normally called ‘Low Doc.’ The rate may be slightly higher than a full document loan but in a lot of cases, this is short term until the tax returns are prepared. Plus, the more paperwork like Accountant’s Declarations and business bank statements you can provide to back up your stated income, the better the rate.

Generally, a higher deposit or equity in another property is required with mortgage insurance payable over 60%, with the maximum loan to value ratio usually topping out at 80%, although 85-90% is available at a premium.

It is understandable that a lender will be more cautious with lending of this type but you can still go ahead with your plans if you are unable to provide the traditional verification of income.

Call me today on 0402 203 303 for more information or email rob@rwfs.com.au.