when is an accountant's letter required?

Any general questions you might have in regards to loans and finance.
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when is an accountant's letter required?

Postby bobby » Mon Apr 12, 2010 5:24 pm


I'm just wondering when would an accountant's letter be required..
if you have your financials for the last years, do you still need an accountant's letter?
and likewise, low doc loan won't require any proof - i.e. including accountant's letter..

am I correct?

Also, in any case, if a letter from my accountant is required for the bank, are there any particular requirements?

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Otto Dargan
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Re: when is an accountant's letter required?

Postby Otto Dargan » Mon Apr 12, 2010 6:33 pm

When applying for most home loans you will not require a letter from your accountant. As a general rule you will only need to provide one when there is something unusual about your situation that your bank requires further clarification about. Some examples are:

* Changes to company structure.
* Explanation of financials / income distribution / one off losses.
* Confirmation of employment for staff that do not receive payslips and that are related to the company owner.

For some low doc home loans you will be required to provide an accountant's letter as evidence of your income. This is rare, most lenders do not require this. In most cases it isn't particularly fair on your accountant to write a letter confirming your income when in most cases it is a long time since they have seen up to date figures for your business.

You can find the requirements for accountant's letters by following the link at the top of my post.
Otto Dargan
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