Self Employed - Max 80% Lend?

[davemgraham]

I've been advised that since my wife and I receive income via a partnership (I'm a contractor) that the maximum lend we can obtain for our next IP is 80%. This is because we're classed as self employed (even though we have very regular income).

Our first IP (2007) was financed at 90%.

Does anyone know if things have changes in recent times?

Thanks in advance.

Dave

 

[Rolf Latham]

Hi Dave

If you have decent finalcials and rtns you will be treated the same as a PAYG.

Notionally to 95 % is possible.

ta
rolf

 

[MC1]

Is it which bank

 

[davemgraham]

Hi Dave

If you have decent finalcials and rtns you will be treated the same as a PAYG.

Notionally to 95 % is possible.

ta
rolf

Thanks Rolf

Is it which bank

by a broker

 

[Aaron Sice]

wow - good on you - i can't find anyone willing ot go over 60%.

 

[Qlds007]

Aaron you must be joking - 60%.

Are you sure you are not looking for a lodoc style loan?

Even then you would be able to get upto 80%.

 

[Ausprop]

everyone i have spoken to has said 60% as well

 

[Bradsdad]

Lo-Doc or Full-Doc. I'm hoping for your brokers sake is Lo-Doc but if income is regular then I'm suspecting not.

 

[Ausprop]

yeh lo-doc (self employed)

 

[Bigtone]

yeh lo-doc (self employed)

should still be able to purchase at 80% pretty easy, getting cash out from other property above 60% is much harder but possible

 

[Qlds007]

Sorry guys but 80% lodoc (subject to 2 years ABN & GST registration if required) is still very much alive and available even post Jun 30 after NCC.

 

[davemgraham]

I can provide a contract which states my hourly rate and period of employment.

I can also provide historical contracts and distribution statements (payslip equivalent) to show consistent income as well as Tax Returns showing consistent income over several years.

Would that still be classed as low-doc?

 

[Peter_Tersteeg]

The main thing to prove income as self employed is the tax returns and assessment notices. Demonstrating contracts and payment history simply makes the application stronger. I can't see any reason why this couldn't be assessed on a full doc basis, so subject to all the usual criteria (affordability, savings, etc), you'd be eligible for the same loans as most PAYG people.

 

[Rolf Latham]

If the contracts are paid to you as NON PAYG income, that is, your employer doesnt deduct tax, and you can deduct a bunch fo expenses, you pay your win GST, and and u arent subject to PSI rules, and what Pete Said, youd have a good change of being regarded as self employed and would qualify for the same as PAYG people.

Problem arises where you are contract and still paid pn PAYG basis and you have had x employers, but even there an 80 % er shoud be feasible

ta
rolf

 

[davemgraham]

Thanks Rolf/PT_Bear

I am paid Gross and pay my own tax. PSI rules are not applicable due to the Partnership arrangement.

I have one employer and have had so for the past 5 years.

I thought our previous loans were not done as self employed....will double check with the broker.

 

[RedCat]

I took two loans out with the NAB in March. I am self-employed but was not a lo-doc and provided 2 years tax returns and a cash flow projection for the following year. Bank didn't care how much I paid myself in wages - they were more interested in looking at the business income because effectively it's the same thing. I was told I could get up to 95%. I ended up deciding to do 80% and avoiding the LMI but certainly there didn't appear to be issues with 95% - same thing when I spoke to St George.