Make sure you consider Connective Essentials when searching for the right home loan for your self-employed customers.
Connective Essentials has some excellent policies to assist self-employed clients where they are seeking to use their 2023 financial years income but have not yet lodged their tax returns.
With simplified income verification criteria, including a recent update to what we need to verify director’s wages, this makes the experience simpler and faster for self-employed customers.
We now only require one year of accountant-prepared annual financial statements, plus 1 year of either management- or accountant-prepared annual financial statements.
For your self-employed customers, you have the option to use the most recent year’s financial information for assessment, where accompanied by accountant prepared financial statements for the year prior and when we can clearly confirm income for the applicants.
To do this:
You must obtain a minimum of six months (180 days) of account credits or payslips when utilising director's wages, or the most recent year’s tax return where the payment is made annually. If you are not able to obtain 180 days of income verification, the most recent tax return can be relied on for verification.
When submitting an application, it’s important customers provide the correct and most up to date information to prevent unnecessary delays.
As a new financial year begins, payslips issued after June 30 will not show sufficient Year-to-Date information where the income type requires 180-day verification.
In instances where the last 180 days income needs to be verified (e.g. where there is uncertain income) please provide additional documentation to support the verification period required.
If you have any questions or would like to discuss a customer’s scenario, please contact your Connective Essentials Business Development Manager.
