- In Bee Savvy - Getting the most out of your loan, First things first - Steps before applying for finance
If you are self employed and looking to purchase a home or refinance, it is important to know how lenders will view your income, as it is usually not as straight forward as you may think.
How Do Lenders View Self Employed Applicants
First of all, for a mainstream lender to consider your self employed income, they will want to see that your Abn has been registered for a minimum of two years.
Secondly, you will need to have a full years tax return completed, or often, two years tax returns.
Not all lenders will treat your self employed income the same way.
How Do Lenders Treat Self Employed Income?
Whether you are a sole trader, or sole director and shareholder of a Pty ltd company, lenders will vary greatly as to how they view the income on your tax returns.
Some will average your income over the past two years, some will only accept a 20% increase on the previous years income to be counted towards your affordability, and fortunately some will accept the most recent years income.
Thinking of buying and not sure of the best way forward?
If you are looking to purchase or refinance and you would like to know what your borrowing capacity is, we can assist you.
Bee Finance Savvy is here to help buyers by matching them with a lender whom will suit their needs as a self employed applicant.
We can assess your tax returns before putting forward any applications to give you an idea of where you stand before you put any marks on your credit file.
If you’d like an up front, no obligation consultation, why not speak to one of our savvy brokers. We are here to answer all your questions, and help you on the way to achieving your property goals.
If you’d like to hear from just some of our satisfied customers, take a look at our reviews on WOMO https://www.wordofmouth.com.au/reviews/bee-finance-savvy-miranda