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  • Profile photo of jameszhaojameszhao
    Participant
    @jameszhao
    Join Date: 2011
    Post Count: 3

    Hi

    Has anyone with experience with the following situation?

    I currently have a cash income from non property related investments of around $100k a year. I’m having trouble getting a loan because some banks will only consider 20% of that income as proper income. Are there any other lenders/brokers that will lend based on the full amount? I’m being told the best way is to get a job. I don’t want to waste my time on that. So they’re happy to lend me what I want based on 3 months of payslips knowing full well I only got the job to get the loan and I’ll probably quit the minute the loan comes through. Yet, they’re not willing to consider the income I already am getting plus the initial capital I already have.

    Anyone have ideas?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    What sort of investments? Many banks will lend on dividend income but it won’t be easy without a job.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of StevenSteven
    Participant
    @steven1982
    Join Date: 2017
    Post Count: 174

    What sort of investments? Many banks will lend on dividend income but it won’t be easy without a job.

    This sounds a bit counter intuitive.

    Those people who are financially free don’t have jobs. They have good investment incomes… so how are they getting loans approved left and right without jobs and payslips?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,010

    If the Taxable income is reflected in your last 2 years Tax Returns then i believe a lender would consider it.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    Self employed operating trusts and companies.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of jameszhaojameszhao
    Participant
    @jameszhao
    Join Date: 2011
    Post Count: 3

    I got out of a bad business situation 6 months ago with some 6 figure losses so I can’t really use my own company to pay myself. I can’t exactly wait for 2 more years for new company tax returns. So personal tax return seems to be the only option but it doesn’t look good as I have’t worked in almost a year. The credit department seems quite hung up on this “have a job and payslip” thing. I guess I’ll have to get creative.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    Banks don’t care what you pay yourself from a company which you own as they will look at the company financials as well. If you are being paid from a company which you do not own then this is employment income possibly.

    Banks must follow the laws in lending and they won’t lend to you if they think you cannot afford to pay it back.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,010

    If the loan is in your Company name then a Nodoc loan is possible but you will paying a few hundred bps above your standard home loan.

    No Income declaration required.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    What sort of investment income is it James?

    If it’s dividends – and if you can demonstrate some consistency in terms of the duration you’ve held the shares, etc then you can use that income for servicing.

    However – not having earnings from s/e or PAYG sources will likely cause headaches unless your investment income is high.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

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