Mortgage Solutions for Business Owners

1. Keep your financial records up to date, including invoices, activity statements, and bank statements.
2. Have at least two years of business financials, company tax returns, individual tax returns, and notice of assessment to prove your income.
3. Pay credit-card bills, credit facility, loans, utilities, telecommunication on time to maintain a good credit score. Try to keep your debt level low compared to your income.
4. Budget your expenses and keep an eye on cash flow to maintain your bank account in good order.
5. Pay ATO debts on time.
6. Carefully manage your stock levels to avoid cash flow strains.
7. Discuss your plans with your accountant to optimize your finances and ensure your financial records are ready to apply for a loan.
8. Keep separate bank accounts and financial records for personal and business transactions to simplify tracking and reporting.

a). 2 years most recent individual tax returns
b). 2 years most recent Notice of Assessment or an accountant’s letter that confirms tax returns are final and lodged with the ATO
c). 2 years most recent company tax return
d). 2 years most recent accountant prepared company financials. These include the last two consecutive years of Profit and Loss statements, balance sheets and depreciation schedules from the most recent financial year.
e). Build equity by adding value to your property and making extra repayment into your loan.

1. All self-employed PAYG applicants are treated as PAYG.
2. Business needs to be operating for over two years and salary paid for at least six months.
3. Provide two payslips, supported by ATO income statement, 6 months salary credits or an accountant’s letter.

a). Full-doc loans: The rates and fees are lower if you can show income for the last 2 years.
b). Low-doc loans: The rates and fees are higher but is a good option if you have not yet lodged your tax return for the last 2 years.
c). Guarantor home loans: Allows you to borrow up to 107% of the property value and get you into the property market sooner.

If you can show financials and evidence of income over 2 years, then your rate is the same as any other PAYG customer.

- Depreciation
- Instant asset write-offs
- Additional superannuation contributions
- One-off expenses renovation, re-location, equipment break down, one off capital expenditure
- Interest expenses
- Company car
- Trust distributions

Some lenders will adopt the highest tax rate and others will use actual tax rates. Combining add back , sensitivity margins, policy might mean the difference in getting the loan approved and more suitable terms with the bank.