Accountants & Solicitors
In many legal practices and accounting firms, all the partners are part-owners of the business. Because most banks do not have formal policies for partners, they will assess you as self-employed. Our panel has lenders who can look at your personal situation, rather than that of the business.
Partner or self-employed?
- A company owned and managed by one person is quite different to a firm, often having 5-20 partners.
- Standard bank policy will require you to provide the financial statements and tax returns for any business where you have hold shares and that generates more than 25% of your income, which can be comprised of salary, directors’ fees, and dividends.
- In applying for a commercial loan in the name of the business, bank will need to assess the situation of the entire business. It shouldn’t be necessary to do so for a home loan.
- We can get this requirement waived if you are a partner in an accounting firm.
Special discounts for accountants & solicitors:
Lenders Mortgage Insurance (LMI) free loans
- A waiver on the LMI with their home loan may be available in some cases to accountants – only accountants, finance managers (including CFOs), auditors and actuaries are eligible to apply for this waiver.
- To apply, your loan must be no more than 90% LVR, you must have an income exceeding $150,000 and be a strong borrower in all other regards.
- For more information, please refer to our No LMI for accountants page.
Concessions on interest rates
- We may also be able to negotiate a special interest rate discount for you if you are borrowing a significant (over $1 million) amount, less than 80% of the property value, and have a high income.
- These professional discounts are all assessed case-by-case.
- Contact us for more information.
- Banks and lenders will generally want documentation to support your income, including personal tax returns and notices of assessment, usually over the last two years. If your salary is sufficient to service your loan, then we can accept your two most recent payslips.
- For selected, larger accounting firm partners, proof of income may be provided through a letter or email from the firm’s administration manager (or equivalent officer) when applying for a residential home loan.
- This will be used instead of standard self-employed income documentation (such as tax returns) for income verification purposes.
Who qualifies for streamlined income verification?
If you are a partner in one of the following firms, and borrowing less than 80% of the property value, then you may be eligible to read more…