How can I get my overseas income accepted by the bank?

Any general questions you might have in regards to loans and finance.
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Otto Dargan
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Re: How can I get my overseas income accepted by the bank?

Post by Otto Dargan »

Hello batman.

Welcome to the forums.

Many Australian banks may have a problem with an applicant presenting their foreign income. In order to have a good chance of getting the income approved by a lender, you’ll need to provide a relevant income evidence for it and the policies will also vary depending on your type of employment.

This means, you’ll need payslips if you have a regular job or certified tax returns if you’re self-employed. Since you’re working on a contract basis, your foreign income may be accepted if you can provide one or more of the following:
  • A letter from your employer.
  • A copy of your employment contract.
  • At least 3 to 6 months of bank statements showing your salary being deposited into your account, if applicable.
  • Tax returns for the last financial year.
Note that for self-employed applicants, you may need to provide a different set of documents, which may include: Please understand that the documents you may need to provide will depend on which lender you choose to go with.

Another thing to keep in mind is that most lenders will require that your documents be written in English. If your financial documents are written in Japanese or any other foreign language then you may need an interpreter’s certificate, which is an official document that translates the original financial document to English and has been certified.

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

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Otto Dargan
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Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How can I get my overseas income accepted by the bank?

Post by Otto Dargan »

Hi batman,

If your income isn’t accepted but you still want to take out a home loan, you may consider getting a low doc loan. Each lender has their own requirements and may accept different document types to prove your income.

For a low doc loan, the main documents that may be used to verify your income include:
  • 12 months’ BAS statements showing a high turnover.
  • An accountant’s letter verifying your income.
  • Business bank statements showing a high turnover.
  • Old tax returns (over 24 months).
  • Interim financial statements.
If you’re unable to qualify for a low doc loan, consider taking out a no doc loan instead. Unlike a low doc loan, you won’t need to provide evidence of your income for a no doc loan meaning you won’t need tax returns, BAS statements, an accountant’s letter or bank account statements to get your income verified.

However, please note that some lenders may still ask you to sign a statement of your assets and liabilities or a declaration that confirms that you can afford the loan. If they ask you to sign a declaration then it won’t ask you to confirm your income, just that you can afford the repayments.

For more information, you can have a look at our website. You can also contact one of our credit specialists by calling on 1300 889 743 or by filling in our free assessment form.

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

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How can I get my overseas income accepted by the bank?

Post by Otto Dargan »

Hi notputin,

Not all lenders accept business bank statements as a valid proof of your income but for the ones that do, you here’s are some general requirements that may give you a good chance of approval:
  • Employment - You must be self employed.
  • ABN - Your Australian Business Number must have been registered for 12 months at least.
  • GST - Your GST must have been registered for 6 months at least.
  • Statements - You must provide 3 – 6 months’ bank statements depending on the lender.
  • Loan amount - You may not be able to borrow more than 80% of the value of your property.
  • Credit history - Minor adverse credit history such as paid defaults of less than $1,000 may be considered.
  • Property - The security property must be in a good location such as a major regional centre and it should be in good condition.
If you’re unable to meet the above requirements, you may consider providing BAS statements or an accountant’s letter as evidence of your income but you may need to meet these additional lender requirements:
  • ABN - Most lenders may need you to have an ABN and GST registration for at least 2 years. However, there are a select few lenders that may accept applicants who only have one year registered ABN and GST.
  • BAS - Most lenders need you to provide 12 months’ BAS. However, few lenders may be able to accept only one or two Business Activity Statements to assess your income.
  • Credit history - You must have a clean credit history; clear of any adverse listings. Your debts must also have been paid on time. However, there may be some exceptions to this.
  • Savings history - If you’re borrowing over 60% of the property value then you may have to prove at least 5% in genuine savings.
Please feel free to contact us for more information.

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

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