How we helped a client Purchase a Residential Investment Property
One of our existing self-employed clients recently purchased a holiday house, without securing a pre-approval prior.
The income / financials for the client were very complex, with multiple entities, and tax returns / financials for the 2021 financial year were not yet complete due to Accountant delays caused by Covid.
From early in each calendar year, the latest / most recent tax returns from the end of the previous financial year are generally required to support loan applications (e.g. from roughly January-March 2022, the tax returns / financials for 30 June 2021 became mandatory for most Lenders, with the timing depending on the Lender).
We were able to research, locate and negotiate a competitive “Lite Doc / Low Doc” loan, where the client’s affordability could be assessed using the BAS Statements for the business, in lieu of completed financials and tax returns which were not available.
The amount of options in the Low Doc loan market has expanded a lot in recent years, in particular now as some businesses are in a recovery phase following Covid, and producing end of year financials which are not representative of their normal turnover / profit.
We would encourage any client – self employed or employees – to contact us if you have any queries.