Settled Scenarios
Alt Doc · 8 months ABN

Newly self-employed with limited business history

Eight months of ABN and rising income after a move from PAYG. Assessed on business bank statements and an accountant’s declaration.

$750K

LOAN AMOUNT

80%

LVR

8 months

ABN

THE STORY

The file, in three parts

What the broker brought, how the credit analyst read it, and what settled

01 · The challenge

The applicant had moved from PAYG employment to running their own business, with only eight months of ABN registration behind them. Income was rising, but there were no tax returns yet and nothing like the two years of financials most lenders ask for. To an automated assessment, eight months of self-employment reads as no verifiable income at all.

02 · How VMG assessed it

VMG accepts newly self-employed applicants from six months of ABN registration, so the file cleared the threshold on registration alone. Income was verified through the Alt Doc pathway: business bank statements showing the actual trading pattern, supported by an accountant’s declaration. A credit analyst read the income as it was being earned, month by month, rather than waiting for a tax return to describe it a year later.

03 · The outcome

A $750,000 loan at 80% LVR, VMG’s maximum. The applicant did not have to put their purchase on hold for two years of financial history; the file was assessed on the business as it was actually trading.

THE TURNAROUND

Before and after

The same file, before the refinance and at settlement.

BEFORE VMG

Eight months of ABN, no tax returns yet.
Rising income invisible to standard servicing calculators.
Declined for lack of two years of financials.

AFTER SETTLEMENT

$750,000 settled at 80% LVR.
Income verified through bank statements and an accountant’s declaration.
Assessed from six months of ABN under human underwriting.

💡THE VMG COMMON-SENSE ADVANTAGE

A tax return describes income a year after it was earned. Bank statements show it as it arrives. Human underwriting can read both.

HOW IT WAS ASSESSED

Human underwriting

Every file is read by a credit analyst, not scored by a system. There is no credit scoring, and no DTI or DSR ratio applied. The product and the terms depend on the individual file, so talk to your BDM about where a similar scenario fits.

Have a similar file?

Test the scenario with VMG credit before you lodge. VMG lends only through accredited mortgage brokers.

Related

More settled scenarios

FUTURE INCOME STREAM
Owner occupied purchase supported by PAYG salary and the remaining tranches of a business sale being paid out over five years.

$1.8m

LOAN AMOUNT

Owner Occ

SECURITY

5 years

SALE TRANCHES
LOW CREDIT SCORE
Seven loans consolidated for a borrower with a low credit score, all repayments current, after the file had been declined elsewhere.

$508k

LOAN AMOUNT

7 Loans

CONSOLIDATED

$525

MONTHLY REDUCTION
DEBT CONSOLIDATION
A tradesperson left solely responsible for eight loans after a separation, with repayments slipping as rates rose.

$552k

LOAN AMOUNT

8 loans

CONSOLIDATED

$1,290

MONTHLY REDUCTION

QUESTIONS

Frequently asked questions

At VMG, newly self-employed applicants are considered from six months of ABN registration. Income is verified through the Alt Doc pathway rather than waiting for two years of tax returns.
Alt Doc verifies self-employed income using a customer declaration plus an accountant's declaration, or six months of BAS, or six months of business bank statements, instead of full financials.
Yes, subject to assessment. VMG's maximum LVR is 80% and it applies across the product range, including Alt Doc files. Serviceability still needs to be demonstrated at 1.10x net disposable income.

All applications are subject to Victorian Mortgage Group’s standard credit assessment and lending criteria. Terms, conditions, costs and charges apply. This article is general information only and does not take into account your objectives, financial situation or needs.

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