Do you know which banks consider only year income for sole traders for the purpose of home loan?
Which bank considers only one year income for Sole Traders?
Ash-Say on 12/07/2016 - 15:16
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What he said. We went through a mortgage broker and in our case the only banks that considered my self employed income (for one year) were ME Bank and ING. We went with ME.
The big 4 will most certainly say no.
@OP: If you are in Melbourne and want contact info of the broker, let me know.
Hi tipu, speaking as mortgage advisers who have over 100 lenders on our panel, you'd be surprised at how many lenders will consider an applicant with a 1 year trading history.
The options and price will heavily depend upon:
1. The proposed LVR (under 60% you'll have a lot of options - over 80% you'll be severely limited)
2. Your industry experience and qualifications (medical doctors & solicitors typically have less stringent criteria than graphic designers, for example)
3. How long your ABN/GST registrations have been in place and how consistent your business cash flow is (12 months ABN+GST and consistent weekly earnings/healthy profits = good).
4. The proposed loan size/property type (if you're looking at a fairly typical $500k free standing house, you will have more options than if you're looking at studio apartments or a loan for $2mil on a mansion).
5. Your credit score and financial profile - if you have an excellent credit history and minimal other debt, you will have more options than a person with a low credit score and significant credit card debt, for example.Some names that spring to mind for lenders who typically like these types of loans would be Liberty Financial, AFM, Pepper Money, La Trobe & Australian Financial. But as mentioned above, there are genuinely a lot of lenders (think 20+) that operate in this space and the pricing/criteria differs widely depending upon your circumstances.
If you wanted to discuss a scenario you were evaluating please feel free to send us a PM.
Hope this helps.
Yeah find a broker as they more likely to fudge the numbers
Get a mortgage broker, they will help sort it for you. I've found that the major banks can be real dicks to deal with directly when it comes to the income from self-employment.