How will lenders read your business income?
Your taxable income is not your assessable income. Lenders add back non-cash and one-off items, then apply their own treatment across your last two years. This tool shows the three common readings, and why the spread between them matters.
Why three readings
Lenders commonly assess two-year self-employed income one of three ways: averaging both years, taking the latest year where the trend is sound, or taking the lower year conservatively. On a growing business, the difference between the average and the latest-year reading is often the difference between buying and waiting, and choosing the lender whose treatment suits your trajectory is the core of self-employed broking.
About add-backs
Depreciation is a non-cash expense, most lenders return it to income. Interest on debts a new loan will clear can be added back, since the cost disappears. Genuine one-off costs, an equipment purchase, a fit-out, legal fees, may be added back with evidence. Voluntary super above the guarantee sometimes qualifies too. Every lender's list differs, which is why the tool shows a range rather than an answer.
Not sure which lender will use your income?
Your income can be assessed differently between lenders. Charles can compare your position before an application is lodged.
Related guides
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