No BAS low doc

Not all lenders need BAS statements!

No paperwork, no worriesIn early 2009 almost all of the lenders in Australia tightened their low doc loan lending policies by requesting Business Activity Statements (BAS) for new applications. This is because of a change of policy made by the mortgage insurer Genworth Financial, who has the final say in their approval process for many lenders low doc loans over 60% of the property value. Westpac LMI, St George Insurance and many others then followed with similar policies which were adopted by the lenders they deal with.

So is it possible to get a low doc loan without BAS statements? Yes! And in many cases the rate is actually lower than the Bank Standard Variable (BSV) rate!

What are the lenders guidelines?

Lenders that still accept an income declaration as sole proof of your income have tightened their policy in a few areas. However they are quite reasonable with their lending guidelines and still offer true low doc loans.

To qualify for a loan you must meet the following criteria:

Borrowing up to 60% of the property value:

  • You must have an ABN that has been registered for 1 day or more to prove that you are self employed OR you must have a job that you have been in for 1 day or more.
  • Your ABN must be GST registered if you are declaring an income over $75,000 p.a.
  • Your credit history must be clear of any adverse listings and you must be paying your current debts on time.
  • Business Activity Statements are not required, this is a true low doc home loan.

Borrowing up to 80% of the property value:

  • You must have an ABN that has been registered for 2 years to prove that you are self employed.
  • Your ABN must be GST registered if you are declaring an income over $75,000 p.a.
  • Your credit history must be clear of any adverse listings and you must be paying your current debts on time.
  • You must be borrowing 80% or less of the property value.
  • Business Activity Statements are not required, this is a true low doc home loan.

What if my ABN is not 2 years old?

We can help you if you have a short term ABN, although the interest rate may be slightly higher.

  • New ABN / 1 day ABN: You can borrow up to 60% of the property value at a discounted interest rate or up to 80% at a higher rate.
  • 3 months old ABN: You can borrow up to 60% of the property value at a discounted interest rate or up to 80% at a higher rate.
  • 6 months old ABN: You can borrow up to 60% of the property value at a discounted interest rate or up to 80% at a higher rate. In some cases we can lend 85% although the rate will be significantly higher & approval criteria is strict.
  • 1 year old ABN: You can borrow up to 60% of the property value at a discounted interest rate or up to 80% at a higher rate. In some cases we can lend 85% although the rate will be significantly higher & approval criteria is strict.
  • More than 2 years old ABN: Normal policy applies. You can borrow up to 80% of the property value at discounted interest rates.

    • How much can you borrow without providing any BAS?

    First home buyer / Home loans: 80% of the property value.

    Investor / Investment loans: 80% of the property value.

    Refinances: 80% of the property value (restrictions apply to equity releases).

    Discounts: Competitive professional package and basic loan discounts are available.

    What if I apply with a lender that needs BAS statements?

    If you decide to apply for a lender that requires BAS statements then you will need to provide your last 12 months BAS statements issued from the ATO, not your copy sent to the ATO. You can print these off from the Tax Office’s BAS portal or by asking your bookkeeper.

    The lender will usually look at the turnover of your business during the last year as shown on your Activity Statements and assume your income to be the lesser of 40% of your turnover or the income you declared. Consultants and other business types that have low expenses may be able to declare an income as high as 80% of their turnover.

    In other cases lenders may also ask for 3 – 6 months business bank statements or evidence of genuine savings to assist in their assessment. Lenders may also ask for other documents such as your annual GST return or evidence that your quarterly GST bill has been paid by the due dates.

    Talk to a low doc loan specialist

    Please enquire online to talk to a specialist mortgage broker that knows how to get a competitive low doc loan without the need to show your BAS statements!