In the past, self employed borrowers and investors were able to declare their income using Low Documentation Home Loans. Proof of income was simple by signing a “Low Doc Declaration Form” replacing the need to provide any proof of income such as 2 years business and personal tax returns.
This week we have been notified that most of the Low Doc Home Loan lenders that supplied this product have joined the other major banks and now require copies of BAS Statements for 6 to 12 months as additional proof.
This will impact many self employed business owners and professional investors in the coming year who may have complex tax structures, or multiple source of income that aren’t recorded on BAS statements. It could stop quite a few investors with their next purchase, or anyone who has used this policy in the past.
It’s extremely important for any client considering a property purchase to talk to an exeprienced Loan Advisor BEFORE they exchange on a property as many changes have occurred throughout the finance world in the past twelve months.
To discover alternatives for your next purchase and strategies around this policy change, call 02 9449 2333 to speak to our team of experienced Plan Assist Loan Advisors.
