Aaron explains how to use 2019 tax returns for home loan applications during COVID-19. Lenders now want recent business bank statements, a letter from your accountant confirming you're still trading, and your latest BAS statement. Processing times are slower than usual.
Can you still use your 2019 tax return for lending right now? Lending right now has changed. Hey, it's Aaron from Diagnostics and Finance. One of the things that is big change right now is that global pandemic. One of the things that the banks did to support people through. And right now some people still may be locked down, still may be having some trouble, but what one of the banks did was put your home loan on repayment pause. And that cost them a bit of money to hold on to things. So what they did with new people going for loans is that they asked for a little bit more documentation. So, original question, can you use your 2019 tax returns right now? The answer is yes, you can. There are some other requirements. Some banks are asking for some bank statements for your business bank account to make sure that there's money going through it and you're not going to be put into stress because 2019 was a different year to right now. Another thing that banks are asking for is maybe an accountant's letter to say that you're trading and everything's going okay, or something to that effect. Another way that the banks are looking at it is to use your 2019. But look at your last BAS submission. And that BAS submission would have things like wages payable, what you owe the tax office and what the tax office owes you from a GST point of view. So right now, can you use your 2019 tax return? Absolutely, yes. But you're going to have to just jump through that extra hurdle to be able to get the right loan in place right now for your residential home loans. We can get great rates and banks are buying customers. There's record of submissions going on. There are some queues that people are needing to wait. Some of the big fours are blown out there service times, whether it's a small request or a big request that's going into the same bucket. What I like to do and what my team like to do is go through your situation, have a look at the service level agreements, make sure that those products are going to be acceptable to you according to your timeline. One of the things that's come up recently is that timeline. So can you use your 2019 tax returns? Absolutely, yes. Can you go through getting a home loan, getting a better rate? Absolutely you can. If this resonates with you or you need to have a look at your situation right now, reach out to me and we'll talk soon.
