PAYG and self employed loan

[strongy1986]

Question

If you are employed PAYG part time but have also been running your own business for just over a year, will also being self employed actually hurt your serviceability in the banks eyes?

The business is a service business with ongoing rent of $120 per week, almost no start up costs, yearly expenses about 1k , profit so far about 10k

Thanks guys

 

[Brady]

No not unless by being self employed your PAYG income has decreased or if your business is running at a loss.

More income means more serviceability.

 

[strongy1986]

No not unless by being self employed your PAYG income has decreased or if your business is running at a loss.

More income means more serviceability.

Ok cool

I just thought they may consider it more of a risk because of the rental payment, low profit and the fact it's only been going for 1 year

Would the bank be after a tax return (only will show 6 months) or a 1 year statement from start date to now?

Cheers

 

[Brady]

Ok cool

I just thought they may consider it more of a risk because of the rental payment, low profit and the fact it's only been going for 1 year

Would the bank be after a tax return (only will show 6 months) or a 1 year statement from start date to now?

Cheers

Your net profit would of already taken out the rent.

Depending on bank and few different factors.

Is your self employed work in the same industry as your PAYG? If it is you would find that alot of banks would be happy to use this. CBA would likely be happy even if its a different industry as long as was strong application.

Bank would be after a tax return and possibly BAS if they're are available.