Can I get a home loan without providing my tax returns?

Any general questions you might have in regards to loans and finance.
Nico Robin
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Joined: Tue Mar 29, 2016 1:57 pm

Can I get a home loan without providing my tax returns?

Postby Nico Robin » Tue Mar 29, 2016 3:57 pm

I've been working as a freelance photographer for the last 3 years. I have saved some money towards purchasing a home and now I'm looking for a property in the beautiful neighborhood of Fortitude valley in the range of $300-350,000. My income varies from $60-70k per annum and I have a clear credit history.

My friend has suggested that banks are not keen to provide home loans to people without tax returns. Can anybody at this forum tell me if this is true and whether or not I’m eligible for a home loan?

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

Postby Otto Dargan » Wed Mar 30, 2016 9:23 am

Hello Nico Robin. Welcome to the forums.

Freelancers tend to have a hard time getting approved for a home loan mainly due to the strict requirements set for the self employed or those who run their own business. However, by applying with the right lender, you can get better home loan deals despite being a freelancer.

If proving your income through traditional means such as tax returns is difficult for you then getting a low doc home loan may be an alternate option because you can get it without providing any recent tax returns.

There are other ways to prove your income besides using tax returns. You may provide last years’ financial statements (Profit & Loss and Balance sheet), last years’ personal tax returns or last years’ notices of assessment.

Most lenders require you to be self-employed for at least two years. Although very rare, there are some specialist lenders who may consider people who have been self employed for just a day.

Cheers,
Otto
Otto Dargan
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Nico Robin
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Re: Can I get a home loan without providing my tax returns?

Postby Nico Robin » Thu Mar 31, 2016 6:28 pm

Thanks for that Otto. How much can I borrow for this property?

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

Postby Otto Dargan » Fri Apr 01, 2016 10:02 am

Hi Nico Robin,

Since freelancers tend to have inconsistent income compared to PAYG individuals, lenders may often reduce your borrowing capacity.

We have some lenders who accept two years financial statements without tax returns and lend up to 80% of the property value, however they require the following:
  • Two years financial statements.
  • The financial statements should be prepared by an accountant and it shouldn’t be a draft.
  • You don’t need to provide tax returns or notice of assessment.
More information regarding self-employed home loans as well as add backs can be found on our website. You can also ring us on 1300 889 743 to discuss your personal situation regarding the home loan. You can enquire online to check if you may be eligible for a loan or not.

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

Nico Robin
Posts: 9
Joined: Tue Mar 29, 2016 1:57 pm

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

Postby Nico Robin » Fri Apr 01, 2016 7:49 pm

It sounds more complicated than I’d assumed. I’ll ring you guys to know more about this. Bye for now.

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

Postby Mean Green » Mon Apr 04, 2016 7:36 pm

We were also thinking of buying a house and will need to take out a low doc loan. We’re planning to borrow about $450,000 for a property worth $600,000. We had other things planned, but I hadn’t considered LMI. How much LMI may I possible have to pay?

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

Postby Otto Dargan » Tue Apr 05, 2016 10:53 am

Hi Mean Green,

The size of LMI premium usually varies across different lenders and insurance providers. Basically though, it depends on the LVR (Loan to Value ratio), and the higher the loan amount, the higher will be the LMI premium. You can refer to the LMI calculator to get an estimate on the LMI premium you may be required to pay.

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

Mean Green
Posts: 5
Joined: Sun May 01, 2016 4:12 pm

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

Postby Mean Green » Wed Apr 06, 2016 8:19 am

Thanks for that info Otto. I’ll speak to you guys shortly. Cheers!


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