19 Mar 2022

How Much Can I Borrow If I Have No Current Tax Returns?

No Current Tax Returns and Mortgages

Lenders require a mortgage application to verify the applicant’s finances. All lenders must ensure that an applicant can repay their home loan in full and on time. Homebuyers who have no current tax returns put themselves in a precarious situation. For example, banks rarely fund mortgages for individuals who can provide limited financial documentation. They have made the low doc loan available to self-employed homebuyers. However, banks remain conservative in their lending practices.

Mortgage House will consider home loan applications from individuals who cannot provide their last two years of tax returns. Instead, we’ll ask for alternative forms of financial documentation. Since this situation mostly applies to self-employed homebuyers, our loan specialists will request:

  • Business statements
  • Bank statements
  • Signed affidavits confirming income
  • Letters from accountants

Homebuyers who receive an inheritance or financial settlement might not have the ability to provide their latest tax returns too. Nonetheless, Mortgage House will evaluate the application and attached financial documentation. Then, our loan specialists can find loan products and home loan rates that suit the situation. 

Individuals who cannot provide tax returns often receive between 80% to 90% loan-to-value. Those who provide a 20% deposit, collateral, or guarantor can improve their position. Then, we take a look to see how the financial pieces fall into place.

No Current Tax Returns and Mortgages Conclusion

If you have no current tax returns, you can still apply for a mortgage. The maximum a lender will consider lending you is between 80% to 90% LVR. To explore your options with Mortgage House, contact our loan specialists.

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