Home Loans for Self-employed Broker Clients

Fast Track assessment

If your client is eligible for Fast Track assessment, they can expect:

• Assessment without the need to provide business financials
• Same experience and turnaround as employees on a salary.

Fast Track applies even if your client has a: 

• PAYG income
• Rental income
• Joint application, and one or both of the applicants are self-employed. 

Fast Track eligibility criteria for self-employed clients:

• Provide personal ATO NOAs for the last 2 years, with capital gains deducted from taxable income, and have been self-employed in the same business for the last 2 full financial years 
• At least 80% LVR, meaning LMI doesn't apply (Medico clients may qualify for an LMI waiver for up to 95% LVR – see FAQ below) 
• Extra income is not required to meet serviceability as covered using the income from their 2 personal ATO NOAs  
• Have no more than $200 in foreign income tax credits on either year of their ATO NOAs.

1 Year Assessment

Clients who meet the following eligibility criteria will only need to provide one years' worth of documentation:

• Individual borrowers only
• Trading for a minimum of 2 financial years
• LVR less than or equal to 80%
• Minimum Credit Bureau Score for each borrower is 650
• No Debt Consolidation
• Maximum Total Aggregated Exposure (TAE) is $3 million (per application, including the loan being requested)
• No trading carried forward losses or assessed losses (after adjusted) from self-employed entities (current, latest or prior year)

In addition to:

•  Most recent 1 year of personal ATO Notice of Assessments.

Sole traders also need most recent 1 year of:

•  Personal Income Tax Returns.

Business partnerships, companies and trusts also need the most recent 1 year of:

• Personal Income Tax Returns
• Partnership, Company or Trust Tax Returns
• Latest year balance sheet

It’s a good idea to have the following documents ready, to support:

• Tax-deductible expenses like interest, rental property and one-off expenses, depreciation, asset write-offs, company car deductions and family trust distributions
• Business liabilities like hire purchases, leases, and term loans.

Standard assessment

If your client doesn't qualify for Fast Track, a standard assessment may enable them to:

• Include additional income from their business, such as business profits and add-backs 
• Be assessed on the business's most recent year performance.

Potential for more borrowing power if your client's business: 

• Shows year-on-year profit growth of 60% or less, we may be able to use the most recent year's income in the serviceability assessment to offer more borrowing power 
• Assessed on unadjusted profit (i.e. based on profit figures in financials/tax returns), providing certainty even before starting the assessment that we'll use latest year income^*. 
• Needs to pay LMI on their loan 
• Has been operating as a viable business for the last 2 years (see the 'standard assessment, standard serviceability' scenario documentation below).  

*If using the latest year assessment method, and the year-on-year adjusted net profit is >60%, obtain a minimum 6 months-worth (or more) of Business Activity Statements (BAS) to show continued business performance.

Medico assessment

Medico clients that qualify for Fast Track assessment, borrowing up to 95% LVR with no LMI and no minimum income, are: 

• Dentists  
• General Practitioners 
• Hospital-employed Doctors (Intern, Resident, Registrar, Staff Specialist)  
• Medical Specialists  

Medico clients, on a standard assessment, borrowing up to 90% LVR with no LMI and earnings of at least $90k/year from their occupation are:  

• Audiologists 
• Chiropractors 
• Midwives 
• Occupational Therapists 
• Osteopaths 
• Physiotherapists 
• Podiatrists 
• Psychologists 
• Radiographers 
• Registered Nurses 
• Sonographers 
• Speech Pathologists  
• Optometrists 
• Pharmacists 
• Veterinary Practitioners