Hi, I’m self-employed with an ABN which is active but not trading. I applied with St George for a home loan but the bank will not accept me having a shelf company that is not trading. I had provided a letter from my accountant declaring the same but they wouldn’t accept it.
What should I do?
St George - accountant letter not accepted for a home loan
- Otto Dargan
- Mortgage Specialist
- Posts: 7729
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
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Re: St George - accountant letter not accepted for a home loan
Hello Abe. Welcome to the forums.
That’s St George’s new policy for self-employed borrowers - they no longer accept an accountant’s letter for a company that is not trading.
Their new policy states that:
There are a few banks and lenders that can do this who are offering competitive interest rates and that’s who we’re working with.
Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan.
Cheers,
That’s St George’s new policy for self-employed borrowers - they no longer accept an accountant’s letter for a company that is not trading.
Their new policy states that:
- If the company is not trading, a letter stating it’s not trading and has no liabilities is not good enough.
- If it’s a holding company then you must state this, otherwise, if it’s a company which is just parked there then essentially if you have no returns then it is not going to work out.
There are a few banks and lenders that can do this who are offering competitive interest rates and that’s who we’re working with.
Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan.
Cheers,
Re: St George - accountant letter not accepted for a home loan
The main reason that I applied with St George, to begin with, was because I was told that they accepted this structure and their competitive fixed rates. So, what kind of fixed rates are available with these other banks/ lenders?
- Otto Dargan
- Mortgage Specialist
- Posts: 7729
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: St George - accountant letter not accepted for a home loan
Hi Abe,
The current record-low cash rate environment has led to the banks offering home loan interest rates below 3% p.a. Some of our lenders are offering sharp fixed rates for 1, 3 and 5 years.
Cheers,
The current record-low cash rate environment has led to the banks offering home loan interest rates below 3% p.a. Some of our lenders are offering sharp fixed rates for 1, 3 and 5 years.
Cheers,
Re: St George - accountant letter not accepted for a home loan
Thanks for the info. With cash rate expected to drop further would you recommend fixing my mortgage? If so, for how long?
- Otto Dargan
- Mortgage Specialist
- Posts: 7729
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: St George - accountant letter not accepted for a home loan
Hi Abe,
Yes, it’s true that many experts are forecasting a further cash rate cut, but it is unclear how much of that is expected to be passed on to home loan borrowers. ‘To fix your home loan or not’ is a question we get all the time.
It largely depends on your financial goals and needs. Generally, you shouldn’t fix your loan if you:
Give us a call on 1300 889 743 or fill in our free assessment form to discuss your needs today.
Cheers,
Yes, it’s true that many experts are forecasting a further cash rate cut, but it is unclear how much of that is expected to be passed on to home loan borrowers. ‘To fix your home loan or not’ is a question we get all the time.
It largely depends on your financial goals and needs. Generally, you shouldn’t fix your loan if you:
- Plan to refinance your home loan or sell the property within the fixed term.
- Make large extra repayments on your home loan.
- Plan to renovate or access the equity in your property.
- Don’t like being stuck with a particular lender or product.
Give us a call on 1300 889 743 or fill in our free assessment form to discuss your needs today.
Cheers,