When you need one
An accountant's letter is one of several income options for low doc and alt doc loans. Some lenders accept it on its own; others want it alongside BAS or bank statements. If your BAS and bank statements are strong, you may not need a letter at all.
What a lender expects the letter to include
- Your full name and the business's name, ABN and structure (sole trader, partnership, company or trust).
- How long the accountant has acted for you or the business.
- Confirmation of your income, or expected income for the current year, sometimes with a statement that it's sustainable.
- Whether the business is registered for GST, and that lodgements are up to date.
- The accountant's qualifications, registration number, contact details and signature, on letterhead.
- Many lenders also want specific wording, such as confirming the accountant isn't related to you.
Who can sign it
Lenders generally want a qualified accountant who is a member of a professional body or a registered tax agent, who has acted for you for a period (often at least 12 months) and who isn't a family member or business partner.
Mistakes that get letters rejected
- A generic letter that doesn't match the lender's required wording.
- Income that doesn't line up with your BAS or bank statements.
- A related party or unqualified person signing.
- Missing registration numbers or an unsigned PDF.
- An accountant who hasn't acted for you long enough.
An outline of a typical accountant's declaration
Some lenders phone the accountant to verify the letter, so make sure they know it's coming.
If your accountant won't sign
Some accountants decline to sign income declarations because of the liability involved, or because they haven't acted for you long enough. That's not the end of the road: many lenders accept BAS or business bank statements instead. See alt doc home loans for the alternatives.
Timing
- Give your accountant the lender's template early; busy periods around tax time can mean delays.
- Make sure the income figure matches what your BAS and statements show.
- Check the letter is dated recently; many lenders want it issued within the last 30 to 90 days.
- Keep a copy for your records.
What you’ll need
- Lender's declaration template
- Accountant's details
- ABN and GST details
- BAS
- Bank statements
Who it usually suits
- Self-employed borrowers using low or alt doc
- An accountant who has acted for you for a period
