Tag: Lender Criteria & Serviceability
All the articles with the tag "Lender Criteria & Serviceability".
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How Lenders Treat Fixed-Term Contracts for Company Directors' Mortgage Applications
Fixed-term contracts fund some of the largest corporate services engagements in the country — the Australian Taxation Office estimates that more than 700,000…
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Using the Anticipated Rental Yield of a Proposed Investment Property for Serviceability
The arithmetic of borrowing capacity for self-employed investors has shifted with a speed that leaves conventional serviceability models trailing behind. Sin…
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How Lenders Treat a Newly Registered ABN in an Alt-Doc Application
Australian mortgage brokers who have been writing alt-doc loans for more than five years will remember a period when a recently issued ABN barely caused an u…
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What Minimum Net Profit Do Lenders Require for a Self-Employed Home Loan?
Australian self-employed borrowers face a distinct hurdle in 2025 that has little to do with their actual cash position and everything to do with how lenders…
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How Dividend Imputation Credits Factor into a Self-Employed Borrower's Capacity
As the Reserve Bank holds the cash rate at 4.35% and non‑bank lenders tighten serviceability buffers, the treatment of dividend imputation credits has become…
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How Serviceability Is Calculated for a Sole Trader with Large Profit Fluctuations
Sole trader loan applications have entered a period of quiet recalibration. In July 2024, the Australian Taxation Office confirmed its small business income…
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How NAB's Specialist Lending Team Assesses Self-Employed Borrowers
APRA’s serviceability buffer, now entering its third year of enforcement, continues to reshape the borrowing capacity of self-employed applicants. When the r…
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Westpac's Specific Documentation Requirements for Self-Employed Home Loan Applicants
For self-employed Australians, the gulf between what Westpac requests and what other lenders accept has rarely been wider. Since APRA cemented its 3-percenta…
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When Do Lenders Consider Trust Profit Distributions as Personal Income?
Trust distributions sit at the intersection of tax efficiency and lending friction for Australia’s self-employed borrowers. A client’s latest trust tax retur…
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Using Rental Income from an Existing Investment Property to Boost Serviceability
Australian mortgage serviceability calculations tightened materially after the Australian Prudential Regulation Authority (APRA) locked in a 3.0 percentage p…
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How Debt-to-Income Ratio Caps Affect Self-Employed Borrowers in 2024
Self-employed borrowers applying for a mortgage in 2024 are confronting a borrowing capacity squeeze that home loan rate headlines alone fail to capture. Eve…
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How Do Lenders Assess Discretionary Trust Distributions as Personal Income?
For self-employed borrowers, a discretionary trust distribution that appears on a tax return is not income until a lender accepts it as such. That acceptance…