Being self-employed, the more documentation you can provide, the better your chance of securing a suitable loan. Here’s what’s usually required:
Proof of Income
This includes at least two years' worth of tax returns and Notice of Assessments to verify that the tax returns match those submitted to the ATO. You’ll also need your BAS (Business Activity Statements) for the last 6-12 months.
Proof of Assets
Lenders may want to see what types of equity and assets such as properties, savings and investments.
Credit History
You may be required to furnish at least three months' worth of statements for your business credit cards and transaction accounts, along with evidence of your cash flow and financial obligations.
The specific documentation requirements can vary greatly depending on the lender, the nature of your self-employment, and the type of loan you are applying for (e.g., low doc loan vs. standard home loan). It's essential to consult with a mortgage broker or financial advisor who understands the unique needs of self-employed individuals to ensure that you are meeting all of the requirements for the best possible loan for your situation.