The documentation requirements to verify your income for a standard loan can be extensive when you’re self-employed. Unlike an employee drawing a wage from an employer, when you’re self-employed and looking to borrow money, lenders place greater scrutiny on your capacity to repay a loan.

Your lender will need to see your company bank statements, previous tax returns and other documents prepared by your accountant. This is in addition to the standard documentation about existing debts, security details and other liabilities.

If you are self-employed and can prove your income then the bank will classify your application as a full documentation loan and therefore you we will be able to negotiate a very competitive interest rate for you.

What standard documents are needed for self-employed applicants?

1. Last 2 years Tax Returns (Individual & Business)
2. Last 2 years Business Financials (Balance Sheet & profit & loss statements)
3. Last 2 years ATO Notice of Assessment (Individual)
4. Last 2 years TR for any trusts
5. Flow chart of any trusts/companies showing where the money starts & ends. The banks ask for this information so that they can understand the application.

A few lenders may only ask for 1 years Tax Returns, however, under the responsible lending code, the mortgage broker is still required to complete their due diligence to prove that the applicant is not disadvantaged with the home loan recommended.

Contact us now to get your application started.