Tax season is in full swing and while most people are focused on lodgements and refunds, it’s also a critical time to think about how your tax return could impact your borrowing power. Timing really does matter and we’ve seen firsthand how small oversights can lead to missed opportunities.
If you’re planning to use a government scheme like the First Home Guarantee, which allows you to buy with just a 5 percent deposit and no LMI, you’ll likely need to provide a new Notice of Assessment from your latest tax return. That document can take up to two weeks to arrive after lodging, which means any offer you make on a property needs a minimum 14-day finance clause. We’ve seen buyers miss out on properties simply because their previous broker failed to prepare them for what was required.
If you’re self-employed, this is an important time to plan ahead. Many lenders are now assessing income based solely on the most recent financial year. That means your 2024–2025 tax return could determine how much you can borrow. Most people speak to their accountant during tax time for planning and strategy, but it’s just as important to speak with a broker too. If you’re looking to refinance, top up or buy, getting advice from both sides puts you in the best position.
For those earning casual income, there’s one more thing to keep in mind. Since July 1, your year-to-date income has reset. Lenders are often more cautious when assessing casual work and they each treat it a little differently. Some may focus on your latest payslips, others may request bank statements or review your employment history. That’s why working with a broker who understands these different lender policies is so valuable.
Whether you’re a first-time buyer, self-employed or casually employed, the message is the same. Speak to a broker early, ask the right questions and take the guesswork out of your next move. We’re here to help you make confident, well-timed decisions that put you one step closer to your property goals.
