Retainer plus commission

I have a client who is on a small retainer ($30,000) plus commission. Has been in job for 15 months but has not received any commission as yet because the retainer has to be covered first. The retainer will not allow for a $150k refinance from lo-doc to full doc but his employer is willing to do a letter to say that his income should be $50k for the 09/10 financial year.
Any ideas as to who would accept the letter as proof of income?
 
He is self employed.
Lenders generally require 1 to 2 years personal and business tax returns to assess income for self employed applicants. There may be a lender out there who might accept a letter from an 'employer', but you have to ask, if he has been doing this 15 months, and still hasnt covered his retainer, its not the time to be borrowing money, more like the time to find a new line of work....

Having said that, if he has done his tax, and can show income projections based on the future commission his emplopyer owes him, (most employers will have a statement of commission RCTI's not yet paid etc) you might be able to convince a lender to do a low LVR lend. Pretty unlikely though, and a whole lot of work.
 
Hi fergie

Most lenders which offer low doc products include an option to automatically switch to a full doc product after two years of good loan conduct

Ask your client to read their loan documents. Their lender may be able to provide this option without further financial documentation.

With regards to commission payments, few lenders will take 100% of commissions unless established for two tax years, and most of these will take only 50% of commission payments into account for serviceability

There may be no need to 'refinance', just to switch products which with most lenders will cost a set of documents (usually about $300) provided that the loan itself is not changed in any other way ie no increases

Hope this helps

Kristine
 
Thanks for the replies lady and gentleman. I will have the lenders documents checked to see if there is an auto swap to full doc.
 
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