Self Employed? Your 2021-22 tax return could help you with a lower interest rate.

How your 2022 tax return can help you with a better interest rate Launch Finance

If you are self employed your 2021-2022 tax return is going to be a little different to the last two years and this could see you able to refinance to a lower interest rate or purchase that investment property you have been wanting to.

Although the self-employed returns do not have to be lodged until March 2023, it is important to understand how your 2021-2022 tax return could impact your loan application when you want to refinance or want to borrow more money from the bank.

For self employed borrowers, this year’s tax return is going to be a little different to previous years. With the financial effects of the pandemic over the last two years most businesses have had some sort of government assistance with JobKeeper or other industry grants and previously these have been included in their tax return.

What we have found in this time is that most lenders have not been able to use the government grants as income when assessing their borrowing capacity. This has resulted in that some self employed home owners not being able to reassess and refinance their interest rates meaning they haven’t been able to take advantage of the rate reductions we experienced.  

At Launch Finance, we can assist you with reviewing your 2022 business financials and personal tax returns prior to you lodging your return and will be able to determine if we can review your home loan interest rate saving you money or potentially giving you the ability to purchase a premises for your business or an investment property.

What you need to do:

Start preparing your documents that need to go to your accountant for review – for example

  • Receipts for purchases
  • Get Q4 BAS ready to lodge
  • Download your bank account statements to confirm interest earned on personal accounts and interest charges on business account

What Launch Finance can do:

  • Review your financials to work out your potential borrowing capacity based on your new financials
  • Review your current interest rate on your home and commercial loans to make sure they are competitive
  • Review the current value of your home to see if your interest rate can be further lowered due to higher equity in your property

If you would like to know more about any of the above, please get in touch with us today on (08) 9367 4222[email protected] or fill out the form on this page to arrange an appointment and we can let you know your options!

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