I was introduced to a first home buyer couple who were told they couldn’t borrow by their bank given the males recent move from employee to self employed.
He had been working in medical sales for the same company for the last 3 years. He was promoted in January, which required him to move to “commission only” and transition from an employee to self employed, via his newly established sole trader.
Typically speaking, no full doc lender is going to touch this until the ABN is at least 18 months and we can provide tax returns to verify the income. Furthermore, we had no evidence of how much he would earn being 100% reliant on commission.
However (enters mortgage broker)!
We were able to secure a policy exception, with a major bank, to rely on his income earned while he was still an employee.
We did this by demonstrating his prior years historical earnings and projecting his future earnings assuming a similar run rate, supported by a glowing letter from his employer.
Long story short, if they hadn’t sought a second opinion, they would’ve been waiting another couple of years which could have cost them easily 10% as property prices continue to rise.
Not all brokers are the same!
