There are a few lenders who accept 6 months Business Activity Statements (12 months BAS is preferred) as income evidence for a low doc loan.
The percentage point of your BAS turnover that lenders will consider as your taxable income will depend on what Loan to Value Ratio (LVR) you’re looking to borrow and the industry you’re in. Generally, 40% of the turnover is considered as your taxable income. However, for certain service type industries such as subcontractors, one of our lenders will use 70% - 90% of the BAS turnover.
In order to add strength to your low doc application along with BAS you’d need:
- 2 years registered ABN (1 year ABN accepted)
- 6 month’s Business Bank/Transaction Statements.
- Some lenders may also ask for an accountant’s letter or declaration verifying your income.
Cheers,