Taking secondary income into account

[tubs]

I'm looking at getting a loan post June 30 this year.

I have a second income from a business. Last year it made approx $20k. This year will be closer to $80k.

I understand the ANZ take the $80k into account. Other banks average the previous 2 years, making it $50k.

Which other banks take the recent year into account, instead of averaging the previous two?

Thanks,

 

[Aaron_C]

Bank of Melbourne / St George take the recent year as well. But they do funny things with their credit policy sometimes.

 

[tobe]

ANZ is your best bet. The westpac group (and some other lenders case by case) will only use the latest year if the deal is under 80%, but they will still ask for the previous year and get flumuxed with themselves, especially as you have PAYG income there too. They will do calculations on how many hours a week youre spending working and discount some of the income if they think your burning the candle at both ends. St George/BOM are probably a good 18 months away from having a workable policy and proceedure for approvals.

 

[Rolf Latham]

NAB

But hey, wouldnt it make sense to use a broker ?

ta
rolf

 

[tubs]

You're right Rolf! And thanks for your reply.

My broker has done an initial review and come back with ANZ as being the best. But with all the lenders out there I was hoping there might be other options, including some of the smaller ones.

 

[Marty McDonald]

I got an email from heritage building society or heritage bs as I prefer. They were saying they will go off last years figures as an exception to normal policy. Can't verify this is in practice though.

As others have said the dragon or anz may be best. With the dragons service I think your broker is on the money.

 

[Peter_Tersteeg]

I understand the ANZ take the $80k into account. Other banks average the previous 2 years, making it $50k.

Which other banks take the recent year into account, instead of averaging the previous two?

As an overview of various lender policy on self employed income...

ANZ only require the most recent financials.

St George will want to see the last 2 years, but will assess based on the most recent year. If the year prior is substantially different (like yours is), it may raise a few questions.

Most other lenders will average the most recent 2 years, but if there's a difference of more than 20%, they'll often use the lower of the two unless there's a reasonable explaination.

In your situation, based on income alone, ANZ is probably the best match.

 

[Rolf Latham]

I got an email from heritage building society or heritage bs as I prefer. They were saying they will go off last years figures as an exception to normal policy. Can't verify this is in practice though.

As others have said the dragon or anz may be best. With the dragons service I think your broker is on the money.

not bs anymore

they are a BANK now : )

I note many mutuals, Bs and Cus are moving to the banking space...............funny that

ta
rolf

 

[Aaron_C]

Heritage is pretty good. Not as stiff as the majors but they do have their limitations.