As the title suggests, if you’re self employed you may soon be required to update your tax returns before applying for a loan.
Each lender is different, with some lenders asking for 2019 tax returns as soon as December this year, with others a little more lenient and not requiring tax returns until as late as May 2020. This of course, is always subject to change. Given companies and/or individuals might not be required by the ATO to lodge their returns until early next year, this could mean that fast tracking your tax returns would be required if you intend to apply for a loan.
Having said this, applying now might not necessarily guarantee that the 2019 tax returns won’t be requested by the bank. If you are currently pre-approved, upon finding a property and before receiving an unconditional approval, you may be required to provide your 2019 tax returns so be mindful of this. As each lender signals their changes we will be ensure to notify those who are approved that this is going to take place.
Items such as BAS, Business Banking statements and other documents may also be requested for verification purposes to ensure your income has been consistent as per the tax returns provided.
If you are self employed and thinking of applying for a loan, make sure you get in touch so we can help you be as prepared as possible: 1 800 3 PEASY.