Hi ppl,
For obtaining a home loan from bank for self employed person does bank see the gross amount or the amount on which tax is paid?
Like if I have 30K income and taxable amount is just 8K. Now they will consider my income to be 30K or 8K.thanks
They will go on the 8K. But with certain banks there are certain things you can add back such as depreciation on equipment, some interest etc. non recurring expenses may also be disregarded.
You can always go low doc. Generally around 80% LVR max.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Amni23
The bank will consider your net income (i.e. gross income less expenses) as this is the amount of money you’ll have free to be able to repay the debt. The bank may make adjustments for some items (depreciation, excessive superannuation contributions, abnormal items, etc.).
It sounds like the bank will use $8,000.
Cheers
Stu
Property & Finance News
at http://www.prosolution.com.auWow Terry – I was one second late! [
]Cheers
Stu
Property & Finance News
at http://www.prosolution.com.auI dont have much knowledge abt investment, -gearing etc, but what my understanding is you can buy Investment Properties and then claim back lots of your tax, and you are left with less taxable income, but if bank considers only taxable income how will they lend money to buy more properties???
Stuart
And we both gave the same answer!
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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