Home loans for self-employed clients

If your client is self-employed, our Fast Track assessment process means their home loan application can be assessed without needing their business financials – giving them the same experience and turnaround time as employees on a payroll.

They can still qualify for Fast Track even if they: have PAYG income; have rental income; are applying with someone else and one or both of the applicants are self-employed.
 

Who’s eligible for a Fast Track assessment?

Your self-employed clients who:

• Can provide the last 2 years’ personal ATO NOAs. Capital gains is to be deducted from taxable income.
• Don’t need LMI, as they have at least 80% LVR (Medico clients might qualify for an LMI waiver with up to 95% LVR – see FAQ below)
• Don’t need extra income to meet serviceability (serviceability is met purely using the income from their 2 personal ATO NOAs)
• Don’t have foreign income included in their ATO NOAs.
• Are being paid a salary from their business, receiving distribution from a partnership or trust, or receiving dividends from their company.

Clients who'd like to include additional income from their business (such as business profits and addbacks) or who don't qualify for Fast Track, may be assessed on their business's latest year performance as part of our standard self-employed assessment.
 

The potential for more borrowing power

• If your client’s year-on-year profit growth is equal to or less than 60%, we may be able to use the latest year's income in the serviceability assessment to offer more borrowing power.
• This test will be based on unadjusted profit (i.e. based on profit figures in financials / tax returns), so customers and brokers will be able to have certainty even before starting their assessment that we'll use latest year income.
• Available for client’s paying LMI.
• You'll need to provide documentation that shows us they’ve been operating as a viable business for the last 2 years (see the 'standard assessment, standard serviceability’ scenario documentation below).

What extra docs do I need if my client doesn’t qualify for Fast Track?

You'll need to provide more documentation that shows us they’ve been operating as a viable business for the last 2 years.

In addition to:

• Last 2 years of personal ATO Notice of Assessments;
   

Sole traders also need the last 2 years of:

• Personal Income Tax Returns.
   

Business partnerships, companies and trusts also need the last 2 years of:

• Personal Income Tax Returns
• Partnership, Company or Trust Tax Returns
• Financial statements (including profit and loss accounts, and balance sheets).

It’s a good idea to have documents supporting their tax-deductible expenses ready too (like interest, rental property and one-off expenses, depreciation, asset write-offs, company car deductions and family trust distributions), as well as documents supporting their business liabilities (like hire purchases, leases and term loans).

The following Medico clients qualify for an LMI waiver for borrowing up to 95% LVR, and can be assessed under Fast Track – with no minimum income requirement:

• Dentists
• General Practitioners
• Hospital-employed Doctors (Intern, Resident, Registrar, Staff Specialist)
• Medical Specialists

The following Medico clients qualify for an LMI waiver for borrowing up to 90% LVR if they earn at least $90k/year from their occupation. They’ll need to be assessed under our standard assessment process.

• Audiologists
• Chiropractors
• Midwives
• Occupational Therapists
• Osteopaths
• Physiotherapists
• Podiatrists
• Psychologists
• Radiographers
• Registered Nurses
• Sonographers
• Speech Pathologists
• Optometrists
• Pharmacists
• Veterinary Practitioners