Lender | Self Employed Income Policy |
Adelaide | Required Documentation & Financial Statements Documentation provided as evidence of self employed income must contain the following information: - All tax returns and financials are to be no greater than 18 months old;
- All non-recurring income, including COVID-19 government financial assistance is to be deducted and the reduced income used to assess serviceability.
- Accountant's Name and details clearly stated on documents;
- Applicant(s) ABN A minimum of 2 years trading.
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AMP | (Sole Trader / Partnership / Company / Trust Income) - Minimum self employed period 2 years.
- All applicants (including directors and trustees) must provide personal/company tax returns for the previous 2 years and a minimum of one financial year's ATO assessment notice for each income source.
- Balance Sheets and Profit & Loss statements must be provided for the previous 2 years.
- Latest year’s financials must be provided for all applications received after 31 March.
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ANZ | |
Bank Australia | Policy Details: - A borrower is considered self-employed if the servicing of the loan is reliant on income derived from a business that the borrower owns.
- Understanding the borrower’s occupation and industry is crucial as this will indicate the likely turnover and expenses of the business and assist with a reasonableness test.
- A minimum of two years trading is preferred.
- Where the borrower’s self-employed income in the latest year (year 2) has not increased by greater than 20% compared to the previous year (year 1) then year 2 income can be used.
- Where the borrower’s self-employed income has increased by greater than 20% in year 2 compared to year 1, then year 1 income calculated at 120% can be used.
- Where the borrower’s self-employed income has decreased by greater than 20% in year 2 compared to year 1, then year 2 income should be used supported by a full explanation by the assessor as to the reason for the decrease in profitability.
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Bank of Sydney | - Established for at least two full financial years
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Bankwest | For the self-employed or those who have self-determination of their salary, i.e. company directors, the minimum level of income evidence is as below. Simple Verification: - Maximum age of document - The most recent payslip must be dated within 45 days immediately preceding the application date.
- 100% Income amount used in servicing calculation
Full verification or where two financials are provided: - Maximum age of document - 20 months
- Income amount used in servicing calculation is from the most recent financial year
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Bluestone | Prime - ABN 24 months. GST 13 months
Near Prime All Products Director Fees - All products: Must be noted in Tax Returns
ABN Length - Business continuation acceptable (If changing from Sole trader/ Partnership to Company/Trust etc)
Company Ownership - Considered as self-employed applicant holds at least 25% if issued capital (share ownership)
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Bank of Queensland | |
CBA | - Minimum 2 years trading should be confirmed. If they have not been trading for 2 years individual circumstances can be considered provided the application is deemed credit worthy
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Firstmac | Minimum two (2) years trading in the current business. - Specific Firstmac DLA Discretion - exception may be considered on case by case basis where a borrower has only 12 months trading in the current business and 2 years in previous employment with similar occupation or field
- Minimum of the last two (2) years income (NPBT) should be taken into account when assessing serviceability.
- Current ABN to be provided to confirm self-employment (2 years minimum term of registration).
- If income has varied by +/- 20% or more over the last 2 years, the reason for the variation should be noted and taken in to consideration when assessing income relied on for serviceability.
- The income to be used for serviceability is the Net Profit Before Tax (NPBT).
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Heritage | Requirements Individuals who rely on their own businesses for their primary source of income. Self- employed can take the following forms: - Sole Trader
- Partnership
- Company / Trusts – seeking to purchase property, only available for existing customers
- Minimum 24 months
- Average of the last 2 complete year's financials to be used for servicing, or the most recent year if this is lower than the previous year.
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ING | |
La Trobe | - Self Employed applicants are expected to be in their current business for a minimum of two years, evidence by ABN number required & GST registration (where applicable)
- Applicants with ABN active less than 24 months may still be considered and will be provided a credit grade accordingly
- Alternatively if the applicants can provide evidence of proficiency in the field then they may be graded credit grade A. Subject to satisfactory valuation & La Trobe general credit acceptance.
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Liberty | - Low-Doc - Nova - Minimum 2 years ABN Registration
- Full Doc - Star - ABN from 0 months
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Macquarie | - At least 2 years trading in current business
- For self-employed medical professionals that have previously worked PAYG in the same industry for at least 12 months require a minumum of 1 year trading in their current business.
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MA Money | - ABN from 6 months
- Full Doc - 1 year tax return and 1 supporting document (Latest Notice of Assessment or 1 year Accountant prepared financials)
- Alt Doc - Declaration of Financial Position and 1 supporting document (Accountant Letter or 6 months business bank statements or last 2 business activity statements)
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Me Bank | - Business must have been operating for at least two years. If less than 2 years, bank will need DCA Level 3 Approval.
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My State | - Must be trading for a minumum of 2 years. Change of structure from Sole Trader/Partnership to Company with same ownership rights is considered continual.
- Independent contractors who invoice their employer for payment should be treated as self-employed.
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NAB | |
Pepper - MLB Elite | Full Doc - Minimum self-employed period for 24 months
Alt Doc Prime, Near Prime Clear & Near Prime - Minimum self-employed period of 24 months
Specialist & Specialis Plus |
Resimac | Full Doc - 24 months ABN registration
Alt Doc - 12 months ABN registration
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St George | |
Suncorp | - Business trading for ≥2 years (to be confirmed by ACN/ABN search)
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Teachers Mutual Bank | - Proven over 2 years as evidence by personal and business taxation records.
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Think Tank | Full Doc - Less than 2 years ABN and less than 12 .months GST.
Mid Doc - ABN greater than 12 months, but less than 24 months.
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Virgin | |
Westpac | |
UBank | - Ubank does not do Self Employed, however, they now accept Director Wages as PAYG income provided applicant is a director of the company and company has been trading for a minumum of 2 years.
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Updated
by
Caroline Pollard
