Not all lenders require BAS statements!
Since the introduction of the National Consumer Credit Protection Act (NCCP), most lenders require you to provide Business Activity Statements (BAS) to support your declared income.
You’ll generally need to provide your last 12 months’ BAS statements but what if you can’t provide this?
The good news is that there are a few select lenders that offer no BAS low doc loans with rates that are often lower than the Bank Standard Variable (BSV) rate!
How do I qualiy?
As a general rule, you must meet the following criteria:
- Your ABN and GST must be registered for a minimum of 2 years.
- Your credit history must be clear of any adverse listings and you must be paying your current debts on time.
- You must provide either an accountant’s letter, business bank account statements to verify your income or apply for a no doc loan.
- You must be borrowing 80% or less of the property value.
Why does each lender have different requirements?
Each lender will require some form of income evidence to support the income that you have declared, as this is now required under Australian law.
However they can choose any number of methods to verify your income. Most lenders prefer to obtain BAS statements, however some will accept an accounant’s letter or business bank account statements instead.
Please call us on 1300 889 743 or enquire online to discuss which methods of verification will work for your situation.
What if I’m not GST registered?
Obviously if you aren’t registered for GST then you can’t provide BAS statements!
One of our lenders will still allow you to apply for a low doc loan. The income that you are declaring must be under $75,000 or there is some reason why you would not need to be GST registered.
Please see our page on getting a low doc loan with an accountants letter.
What if my ABN is not 2 years old?
- 1 year old ABN: You can borrow up to 60% of the property value at a discounted interest rate or up to 80% with a very select number of lenders.
- More than 2 years old ABN: Normal policy applies. You can borrow up to 80% of the property value at discounted interest rates.
What if I apply with a lender that needs BAS statements?
You will need to provide your last 12 months of BAS statements issued from the ATO (not the copy that you sent to the ATO). You can print these from the ATO’s Business Portal or by asking your bookkeeper / accountant.
The lender will usually look at the turnover of your business during the last year as shown on your BAS and assume your income to be the lesser of 40% of your turnover or the income you declared. Consultants and other business types that have low expenses may be able to declare an income as high as 80% of their turnover.
In other cases, lenders may also ask for 3 to 6 months of business bank statements as evidence of genuine savings to assist in their assessment. Lenders may also ask for other documents such as your annual GST return or evidence that your quarterly GST bill has been paid by the due date.
How to apply for a mortgage?
Enquire online or call us on 1300 889 743 to talk to a specialist mortgage broker who knows how to get you a competitive low doc loan without the need to show your BAS statements.