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Lenders offer “low doc” loan facilities to borrowers who self-employed, but who are unable to produce full tax returns for the last two financial years at the time of loan application. As actual income cannot be proven, most banks will only approve loans up to a lower percentage of property value.
- some banks will lend up to 60% of value and mortgage insurance is generally not charged
- some banks will lend up to 80% of value and will charge a mortgage insurance premium if the loan exceeds 60%
- most banks will require Taxation Department BAS statements as part of a “low doc” loan application
- there are still a few banks who do not ask for BAS statements, but rely solely on the borrowers self-declared income as stated on an Income Declaration form
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