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Accountant’s letter & Declarations2022-04-26T04:52:38+00:00

Accountant’s letter & Declarations

Accountant’s letter for finance and loan applications.

What is an accountant’s letter?

Like bank statements and business activity statements (BAS), accountant’s letters are a way for self-employed borrowers to support their claims regarding income.

As its name implies, an accountant’s letter is a document signed off on by a fully qualified accountant. The accountant is confirming details of the borrower and their income.

Some lenders will accept an accountant’s letter as an alternative to bank statements or a BAS, but borrowers should keep in mind that these letters are only valid for a certain amount of days. The accountant’s letter attests to a borrowers financial standing at that point in time, so if too much time passes, a lender may no longer feel comfortable approving an application.

Accountants are very important to the preparation of quality financial information

Bank requirements for an accountant letter

The accountant letter should be:

  • On your accountant’s company letterhead, including contact numbers and the company’s Australian Business Number (ABN).

  • Contain details of any industry memberships or CPA qualifications.

  • Letter must be signed and dated.

  • Contain the name of the person who signed the letter.

  • Contain the name of the person who the letter is about, including their company (if applicable).

  • Should confirm that the firm acts as the accountant for the person who the letter is about.

  • Most accountants will require some kind of disclaimer to be in the letter to protect them from legal action.

  • Most lenders will accept a faxed copy but some will require your mortgage broker to hold the original on file.

Low doc loan with accountant’s letter

A low doc loan with accountant’s letter is a feasible option for clients who are not able to provide their financial records and tax returns, for any number of reasons. The accountant’s letter acts as a supporting document for your application.

Meet Allied Business Accountants

As an accounting firm, we can provide accountant letters to help you meet the application requirements from different organizations. We’re committed to not only making the process of accounting letter fast, easy and reailable for you, but also creating an experience that you enjoy.

At Allied Business Accountants, we will support you, as a valued client through the loan process by providing things we can factually verify such as cash flow statements, balance sheets and profit and loss statements. We make a commitment to you to ensure there is no exposure to unnecessary risks for both you or us.

Please contact us early in the lending process if you need these letters signed so we can assess the wording and the risk.

We’re here to make the process
simple and straightforward

• Tailored Advice

So you understand all your options

• Efficient

We keep the process streamlined and stress-free

• Fixed Fees

So you can plan cash flow with confidence

What our Client Say About us

Thanks to David and his team as they are exceptional accountants and always surprise us by how knowledgeable they are in a wide range of fields. For almost a decade, Allied Business Accountants have facilitated the financial structure of our business and have maintained our financial records up to date in a timely manner without headache from our end, or us worrying about missing any deadlines.

Dureka Pty Ltd
I am forever grateful to David for all those years he has invested his attention in my financial affairs and financial strategy. The outcome has enabled me to have the financial freedom and quality of life that I thought I could only dream about. I would highly recommend David and his team.
Tracey Willett

Want to learn more about Allied Business Accountants?

We offer end-to-end business accounting & taxation services in Melbourne

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Experienced, professional Melbourne accountants with industry leading qualifications and accreditations to show for it. Learn more from a specialised business accountants.

Frequently Asked Questions

A low documentation loan (usually called a low doc loan) is a loan that can be approved without providing all of the documentation usually needed to prove your income. Low doc loans usually require you to sign an income declaration and provide your Business Activity Statement (BAS), business bank account statements and/or an accountant’s declaration to verify your income. Some banks or lenders accept these documents as proof of your income without the need to see your tax returns and other financial records.

Low doc home loans are for self-employed people who cannot provide the documentary evidence required to prove their income for normal (full doc) home loans. Self-employed people are often in a situation where they do not have the required documentation for a standard (full doc) home loans.

To meet the income documentation requirements for loan to value ratios above 60%, you will need to supply two (2) of the three documents:

  • The accountant’s letter stating your income;
  • The past six (6) months trading figures; and
  • Past 6 months Business Activity Statements.

You will also need to provide personal and business bank statements for the past three months.

If you are borrowing 60% or less of the property value you may be able to use one (1) of the following:

  • Accountant Declaration;
  • 12 months BAS statements; or
  • Last 6 months Bank Trading Statements.

You will need to have known the accountant who is providing the letter for at least two years.

You must have an ABN registered for at least 24 months. You will also need to be registered for GST for at least 12 months.

If you don’t have the documents required to get a low doc loan you still may be able to get a no doc loan.

Yes, some lenders will accept refinances. Cash out is available up to 70% of the property value when using an accountant’s letter under certain conditions.

Yes, the accountant’s letter home loan allows borrowing for property investment purposes.

This type of mortgage is designed for people who have saved a deposit or have equity in a property but cannot show all of the documentary evidence usually required by the banks to prove their income.

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Level 8, 90 Collins Street
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PO Box 18190
Collins Street East Vic 8003

Phone: +61 3 9097 4050
Email: info@alliedaccountants.com.au

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