Hi all,
A bit of background about me: About 7 months ago I started a company and have relied on invested capital/equity to live since then. The company is now turning a profit and so I’ll be starting to pay myself, but will keep it lower than normal as we’re receiving some (non-means tested) benefits from Centrelink. As a result, I’m only going to be paying myself around $30,000/annum, even though I’ll actually be receiving quite a bit more per week.
My question is, how would lenders assess someone like me for a loan? For example, could I show profit & loss statements to prove that I could actually be paying myself more if I needed to? I have $260k in equity in my PPOR – would that make a difference?
I’m just not sure what the banks would need to see to approve me a loan… any advice?
Dave.
Since you are self employed the lenders will want to see your personal financials as well as the company's. Generally they will want to see 2 years, but it may be possible to get away with one years financials in some instances. Best to see a broker.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Dave!
Congrate on the new Business!
lenders takes in consideration your income + the Business income ( + some add backs, depreciation etc..)
Generally speaking for a good deal it’s preferred that you have 24 month ABN + proofBut there are a selective number of lenders who will lend with 6, 12 ,18 month ABN-Depending on what your wanting the cash for the rate range from:
Residential purchase – 7.2- 9%
Commercial purchase 8.2-12%
Business Loan – 8.2-15%
Private loan – 11% +Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
