Refinance Query

[digs75]

I've currently been contracting since the last 9 months working off my ABN and am wanting to get a refinance on my current unit and use the built up equity to purchase another property.

I've been advised by my current mortgage broker that to get the refinance done I have to present at least 2 years previous income statements going off my ABN.

Issue is since I have just 9 months earning from my ABN that the banks won't consider my application.

I'm looking for suggestions or alternative solutions as to what i could do to apply and get a refinance ?

 

[Peter_Tersteeg]

There's a few banks that will only require one tax return instead of two. There may be some solutions if your LVR is really favourable, and the circumstances are very good, but your best outcome is likely to be to get your tax done promptly in July.

 

[Aaron_C]

Your broker is correct for the major banks...but it all depends on the situation like Peter said.

 

[Mick C]

Correct in saying you need 2 years ABN for a standard full doc only at a decent rate with LVR up to 95%.

There are a small handful of lenders that will consider this with 1 year abn as long as you have a strong employment history in the same industry in the past.

Generally speaking with a 9month ABN, you wil have to consider smaller lenders and reducing your LVR below 80%- rate will depend on your file...but dont be surprise if it's >1% above the SVR.

Regards
Michael

 

[jrc77]

In 2009 CBA accepted my ABN income when I had been working as a contractor for about 6 months. However I was working in the exact same field (in fact at some of the same clients) for 10+ years as a permanent for a consulting company.

Was a <80% lvr loan.

Not sure if policy had changed or maybe I just got lucky

Regards,

Jason

 

[digs75]

thanks for your replies...looks like I may need to go back on PAYG since I will need a 90% LVR in my circumstance

 

[Marty McDonald]

thanks for your replies...looks like I may need to go back on PAYG since I will need a 90% LVR in my circumstance

I got a 90% lvr deal approved $600k loan about 18 months ago (and $500k at 80% at same time). AbN and gst held only 2 weeks. Had rock solid contracts in place and same as previous work. Used previous PAYG income for servicing . Engineer and with 3 yr contract to RIO was the clincher.

Nothing is impossible but income has to be "bankable". If u want to bend the rules at above 80% you have to provide comfort not just warm and fuzzies.

 

[tobe]

There's a few banks that will only require one tax return instead of two. There may be some solutions if your LVR is really favourable, and the circumstances are very good, but your best outcome is likely to be to get your tax done promptly in July.

My understanding is those lenders who only require 1 years tax returns require 2 or 3 years abn registration? that is, you can provide, and they will assess just on one years income, but it cant be your first year in business.

 

[Mick C]

My understanding is those lenders who only require 1 years tax returns require 2 or 3 years abn registration? that is, you can provide, and they will assess just on one years income, but it cant be your first year in business.

Generally speaking that's true...but St George bank would do 1 year ABN for contractors who in the same position/ job and clients.

Regards
Michael

 

[Rolf Latham]

thanks for your replies...looks like I may need to go back on PAYG since I will need a 90% LVR in my circumstance

If anyone can get it Marty can : )

He is the whipping boy of hard to get across the line deals................

ta
rolf

 

[Marty McDonald]

If anyone can get it Marty can : )

He is the whipping boy of hard to get across the line deals................

ta
rolf

Rolf thank you but let's get back to op. Can the op prove their abn income is consistent and will continue? If so and i mean prove it without a doubt it CAN be done. If there is no rigor to back up your income claims forget it.

Most likely you will have to wait until the end of this financial year.