Low Doc (self dec)
- Thread starter Cales405
- Start date
Maybe
especially if the income is below the GST threshold, OR you can demonstrate beyond doubt that your income attracts GST
ta
rolf
especially if the income is below the GST threshold, OR you can demonstrate beyond doubt that your income attracts GST
ta
rolf
Most lenders require gst rego 1 or 2 years minimum but if you self declare less than $75k income it might work with some lenders. However you would also need some other form of income proof such as bank statements or accountants letter (unless you want to pay 11%).
Also as a contractor you might be able to do a full doc loan. If contract has an hourly pay rate and set / minimum hours essentially you can be viewed as payg by some lenders.
Contracting on a commission base only, so even as an employee wage is 100% commission. It is too hard to show consistency at this point to do full doc.
I moved interstate and sold my house and now will have to wait another year to buy new PPOR, as then will have GST registration for a year, ABN registration for 2+ years and bank statements and BAS to support, giving more options.
It is not a bad thing, but wanted to have options open if I found something we liked now.
The income I planned to declare would be understating what I should earn, but very hard to prove at this point.
When we were fishing for one of these a few months ago, they basically disappeared on Jan 1st this year. We actually had approval for one but think the broker took a month's holiday before bothering to tell us and left us with 2 weeks too little time to actually act (applied with broker Nov 5th, got confirmation of approval Dec 24th, right before the 2 week Christmas standdown). Because of the change in rules on Jan 1st they refused to extend our pre-approval period on a stated lodoc so we had to start from scratch trying to get finance.
Now you either have to prove everything back 2 years-ish or get a letter from your accountant. And annoyingly, unless 100% of your income is self-employed, the big banks are quite happy to ignore as much of your income as they want and increase your expenses to match. I'm still impressed we found a lender in the end who agreed we could repay $200k, most of the others decided we earn $20k and with 3 kids we couldn't even afford to live on their calculation. Makes me want to smack them around with our expanding bank balance.
Now you either have to prove everything back 2 years-ish or get a letter from your accountant. And annoyingly, unless 100% of your income is self-employed, the big banks are quite happy to ignore as much of your income as they want and increase your expenses to match. I'm still impressed we found a lender in the end who agreed we could repay $200k, most of the others decided we earn $20k and with 3 kids we couldn't even afford to live on their calculation. Makes me want to smack them around with our expanding bank balance.
i'd hate to see what you could borrow if you were earning UNDER $75k self employed - the serviceability calcs are shocking.
That is why I was thinking down the lines of someone with multiple ABN's, non GST registered.
i.e. 3 ABN's non GST registered can declare income under $75000 each ABN, so none of them require GST registration and declaration of income under $225000 still would not require GST registration.
Self employed or PAYG under $75000 can't borrow much these days for the average married family, with 2 1/2 kids.
Geesh - how much is 'not much'? I think we eventually got assessed at about $50k because they still didn't take some of our income streams or potential rent into account, and we got $200k total - with 3 kids. Which I guess is way less than your average house these days.
I think our lender actually realises that with someone in the house on DSP we get crazy concessions on stuff. Only just put the forms in for the concessions and we're still getting refund cheques in the mail from government departments we didn't even know we'd get a concession for
Edit: DSP isn't taxable income and neither is FTA/B so between low income rebates and pension concessions we don't pay tax ...
I think our lender actually realises that with someone in the house on DSP we get crazy concessions on stuff. Only just put the forms in for the concessions and we're still getting refund cheques in the mail from government departments we didn't even know we'd get a concession for
Edit: DSP isn't taxable income and neither is FTA/B so between low income rebates and pension concessions we don't pay tax ...
Geesh - how much is 'not much'? I think we eventually got assessed at about $50k because they still didn't take some of our income streams or potential rent into account, and we got $200k total - with 3 kids. Which I guess is way less than your average house these days.
I think our lender actually realises that with someone in the house on DSP we get crazy concessions on stuff. Only just put the forms in for the concessions and we're still getting refund cheques in the mail from government departments we didn't even know we'd get a concession for
Edit: DSP isn't taxable income and neither is FTA/B so between low income rebates and pension concessions we don't pay tax ...
Majority of lenders work on the Henderson Poverty Index
A married couple is just over $1700 in living expenses and each child is just over $400 each, so married with 3 kids is almost $3000 net income you have to earn per month before you can borrow a dime.
As an aside, the HPI will be replaced in due course with something a little more realistic.
Wonder what universe kids cost $400 a month in ... < $100 in new clothes every season change (clothes keep getting cheaper and cheaper, you can get shoes for $5 these days), plus about 1/2 what an adult eats each day for the biggest one, which is reasonable because she weighs about half an adult. And $2 or so a day in nappies for the small one and $5 a week in childcare for the medium sized one. School $250/year. $notmuch for the TV being almost always on. I'm sure it'll all change when they hit puberty and start actually eating.
Now, full price childcare ... that's another matter. $60 per day each.
Oh, bandaids. Can't forget those, we need shares in a bandaid factory. That and toilet paper Why don't the banks actually ask you for your *real* expenses? Ours went through our bank statements with a fine tooth comb and queried anything that looked funny.
Interestingly, the school card limit is about what you quoted above. I wonder if they are linked or if it is coincidence?
Ignoring the fact we're spending a tonne of money on upgrading to a bigger house to fit the little blighters in of course
Now, full price childcare ... that's another matter. $60 per day each.
Oh, bandaids. Can't forget those, we need shares in a bandaid factory. That and toilet paper
Why don't the banks actually ask you for your *real* expenses? Ours went through our bank statements with a fine tooth comb and queried anything that looked funny.Interestingly, the school card limit is about what you quoted above. I wonder if they are linked or if it is coincidence?
Ignoring the fact we're spending a tonne of money on upgrading to a bigger house to fit the little blighters in of course
Interesting. That will be a refreshing change and long overdue.
try $74....
I am the director of an IT company and so even though I am PAYG, I get classed as a self employed person by pretty much all lenders.
I do my IP loans as self certified income with BAS. The rate is pretty close to full doc due to my cash position and BAS amounts, I think my latest rate was 6.89% on low doc.
Trying to explain my salary and packaging is always interest... makes the brokers head explode usually I profit/debt cycle the company profits through my PAYG then back again through my directors loan account, drastically reducing tax paid by myself and the company. As such most of my annual salary is paid on June 30th, with monthly living expenses paid as a monthly salary, and a company provided car/phone/lots of other expenses.
Fortunately I have a broker who now understands how it all works and can get finance easily
I do my IP loans as self certified income with BAS. The rate is pretty close to full doc due to my cash position and BAS amounts, I think my latest rate was 6.89% on low doc.
Trying to explain my salary and packaging is always interest... makes the brokers head explode usually
I profit/debt cycle the company profits through my PAYG then back again through my directors loan account, drastically reducing tax paid by myself and the company. As such most of my annual salary is paid on June 30th, with monthly living expenses paid as a monthly salary, and a company provided car/phone/lots of other expenses.Fortunately I have a broker who now understands how it all works and can get finance easily
