Low-Doc With An Accountant’s Letter

Some lenders can accept a low-doc declaration and letter from a qualified accountant to replace the business activities statements (BAS statements).

Required details:
  • The lenders normally have their specific form of declaration for the accountant to complete. Otherwise, the letter must be presented on the accountant letterhead.
  • The letter must show the accountant’s details such as ABN, contact number and address.
  • The letter must be signed and dated.
  • The accountant must also specify the time that he/she has been acting as an accountant for the borrower.
  • The letter should also mention that although the current financials are not available but based the knowledge of the accountant, the estimated gross income is reasonable.
  • Taxable income of the borrower.
  • Disclaimer is required to protect the accountant.
What if my accountant refused to sign the letter?
  • Some accountants are not comfortable to sign the letter due to the declared income is not reasonable. If your actual income is not as good as your declared income, it is better to lower the loan amount rather than persuading your accountant to sign the accountant.
  • However, if you are earning good income, there are some other options that will help your accountant to be more comfortable to sign the letter.
  • Your accountant may refuse to sign the letter because of the lender’s format. Changing to another lender would be a good option.
  • Declare a lower income.
  • Include a disclaimer so that your accountant can be protected.
  • Providing BAS statements.
  • You must be registered for GST if your declared income is more than $75,000. If you are not registered for GST, the lender will decline your application.

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