Can I get a home loan without my tax returns?

Any general questions you might have in regards to loans and finance.
amira
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Joined: Wed Mar 14, 2018 8:41 pm

Can I get a home loan without my tax returns?

Postby amira » Tue Jan 08, 2019 6:02 pm

Hi there,

I am a fashion designer and have my own studio. It’s doing pretty well and I’m quite satisfied with the progress it’s made within the last couple of years. Now, I want to buy a house of my own and have saved almost $45,000 for this. I have a good property in the outskirts of Melbourne and I don’t want to lose out this. But the catch is I haven’t been able to lodge my tax returns for this year. How should I proceed for a home loan?

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Otto Dargan
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Re: Can I get a home loan without my tax returns?

Postby Otto Dargan » Tue Jan 08, 2019 7:27 pm

Hello Marky. Welcome to the forums.

There are low doc loans for self-employed borrowers who don’t have enough income evidence like up to date tax returns and cannot prove your true income for a home loan. This is the only way that you can borrow without recent tax returns or financial statements.

For that, however, you have to provide alternate income verification documents such as Business Activity Statements (BAS) or an accountant’s declaration. This is the only way that you can borrow without recent tax returns or financial statements.

Not all lenders provide low doc loans, and if you could provide other documents, then you may obtain a home loan if your other aspects such as credit history and the security are acceptable to the bank.

Please note that Lenders Mortgage Insurance (LMI) is normally applicable if you borrow over 60% (Loan to Value Ratio (LVR) or 60% of the property value).

As for the loan amount, you can borrow 80% of the property value with most banks. Some few would allow you to borrow up to 85% LVR.

You can enquire online or give us a call on 1300 889 743 if you want to know more about low doc home loans.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

amira
Posts: 6
Joined: Wed Mar 14, 2018 8:41 pm

Re: Can I get a home loan without my tax returns?

Postby amira » Tue Jan 08, 2019 8:51 pm

Oh, yes I can arrange for the BAS. However, arranging 15% of the property value is a big ask. Are there other alternatives the banks will accept as my contribution?

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Otto Dargan
Mortgage Specialist
Posts: 7486
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Can I get a home loan without my tax returns?

Postby Otto Dargan » Wed Jan 09, 2019 12:38 pm

Hi amira,

You can ask your parents if they can gift you the money for the deposit. If they’re happy to, your parents can actually gift you the money for the deposit to buy a property.

Your parents can gift you the money they have in their savings account, through the sale of assets, such as a car, or an inheritance.

As you have a good deposit by yourself, this gifted deposit needn’t be saved in your bank account for three months (which is usually required if shown as genuine savings).

Also, please note that lenders accept that comes from your parents, or your immediate family members such as siblings, grandparents or your spouse. Anybody apart from these and they tend to reject the gifted deposit and you will have to explain the closeness of your relationship with them and provide an explanation of your situation to the bank.

Also, we can be reached on 1300 889 743 or you can fill in our free assessment form to see if you qualify for a low doc mortgage or not.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

amira
Posts: 6
Joined: Wed Mar 14, 2018 8:41 pm

Re: Can I get a home loan without my tax returns?

Postby amira » Wed Jan 09, 2019 1:54 pm

Your website further helped understand the low doc loan. I’d like to firstly speak with my mum about the gift and then talk with one of your brokers and find a deal that best suits me. Cheers.


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