How much can I borrow with a 120k BAS turnover?

Any general questions you might have in regards to loans and finance.
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Otto Dargan
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Re: How much can I borrow with a 120k BAS turnover?

Post by Otto Dargan »

Hello Duran. Welcome to the forums.

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.
Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a low doc home loan with BAS.

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

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: How much can I borrow with a 120k BAS turnover?

Post by Otto Dargan »

Hi Duran,

While it’s true that RAMS’ pricing and policy were excellent for low doc borrowers, there are still a lot of lenders that offer low doc loans. For some types of low doc loans, RAMS was the cheapest in the market and for others, they were not. So, it really depends on your situation as to if you will pay more or not. If you’re borrowing up to 80% of the property value then there are quite a lot of competitive low doc lenders available.

You can also compare low doc interest rates on offer from our panel of almost 40 lenders.

Cheers,
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 much can I borrow with a 120k BAS turnover?

Post by Otto Dargan »

Hi Duran,

Not exactly. An accountant’s letter is on the accountant’s letterhead and is signed and dated by the accountant and may have a disclaimer. Whereas, an accountant’s declaration is the lender’s own form and has figures that have to be completed by the accountant. Each lender has its own requirement and its own format. Some require a declared income from the accountant whereas others just need confirmation that you can afford the loan. Some lenders will not allow a disclaimer to be added by the accountant. Which option is most suitable for you will usually depend on what your accountant is willing to sign.

The goal is to go with a lender that has a method your accountant is comfortable with and that has great pricing and policy.

We specialise in self-employed home loans with alternative income verification documents.

Give us a call on 1300 889 743 or fill in our free assessment form to discuss your options.

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

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