Torquay has outgrown the description of a holiday town. Families have moved down permanently, the schools and shops have followed, and the estates north of the highway keep releasing land. The result is a market with two halves: established beachside streets that trade at a premium and rarely come up, and a steady supply of new house-and-land packages a few kilometres inland.
The other thing that sets Torquay apart is who lives here. A large share of the working population runs something, whether that is a trade, a cafe, a surf business or a consultancy. Self-employed income is read very differently from one lender to the next, and choosing correctly can move a borrowing figure by hundreds of thousands.
Loanworx is an independent finance broker working throughout Torquay and the Surf Coast, comparing a wide panel rather than a single credit policy.
Buying or building in Torquay? Call 1300 562 696 and we will map out your borrowing capacity and the likely structure.
Three scenarios cover most of what we arrange in town.
The newer estates run on house-and-land contracts, which means a construction facility rather than a standard mortgage. Funds are released as each stage finishes and you pay interest only on what has been drawn, which matters when rent is still going out.
Closer to the water, stock is tightly held and prices reflect it. Larger loans bring tighter maximum ratios and closer scrutiny of income, so the lender needs choosing on appetite rather than on advertised rate alone.
Sole traders, companies and trusts are everywhere in Torquay. Two lenders reading identical financials can land a long way apart, particularly once add-backs are considered.
Self-employed applications live or die on documentation, and knowing what is needed shortens the process considerably:
| What is asked for | Why it is wanted |
|---|---|
| Two years of business financials | To establish a trend rather than a single good year |
| Personal tax returns and notices of assessment | To confirm the income you have actually declared |
| An accountant’s letter | To explain add-backs or a one-off result |
| Business bank statements | Used where financials are unavailable, under alternative documentation |
| Evidence lodgements are current | Overdue returns are a common reason an application stalls |
This table is a general guide only. Policies differ by lender, by your circumstances and by the property, and they change over time, so treat it as a starting point rather than a quote.
Business owners are routinely told they cannot borrow what they expected, usually because the lender took the net profit figure at face value. Depreciation, one-off expenses, additional superannuation, interest on debts being refinanced and a director’s own wage can often be added back, and the difference is rarely small.
We work from your accountant’s figures and present them the way each credit team wants to see them, then take the file to the lender whose policy treats your structure most generously. For a lot of Torquay clients that single decision is worth more than any rate negotiation.
Four areas carry the most weight, and for many borrowers here the first one is decisive.
Most lenders want two years of financials, though some accept one and a few work from business bank statements.
Add-backs vary considerably, and the same set of accounts can produce very different assessable incomes depending on where the file is lodged.
For an estate build, lenders assess the fixed-price contract, the plans and permits and the builder’s licence and insurance before committing.
Cost-plus arrangements and owner-builder projects are fundable but sit with far fewer lenders on tighter terms.
Beachside purchases push loan amounts into brackets where lenders reduce their maximum ratio and escalate the file to senior credit staff.
Knowing where each institution’s thresholds sit avoids applications that were never going to succeed.
Equipment finance, business overdrafts, vehicle leases and any guarantee you have given for a company all reduce what a lender will advance, as do credit card limits you never draw on. Where the business and the household share facilities, the picture needs untangling before lodgement. We audit the whole position with you first so the application reflects reality and survives assessment.
From a first purchase to an investment or a rebuild, these are the areas we cover.
Getting a first purchase across the line, schemes included.
Buying the next place without carrying both any longer than needed.
Borrowing against a rental property, with the holding costs allowed for.
Rebuilds and new homes funded in stages, from slab to handover.
Using super to hold an investment property, structured correctly.
Reviewing your rate and structure, and switching where it pays.
Four things that matter when your income does not arrive as a fortnightly payslip.
Trading businesses, trusts, companies and sole traders are what a large share of our clients look like. We know which lenders read each structure most favourably.
We have no arrangement with any builder or land developer, so the lender we recommend is chosen on merit rather than on a referral.
On a build, each progress payment is coordinated with your builder and the lender so the site keeps moving rather than waiting on paperwork.
Our income on most home loans is an upfront and trail commission paid by the lender once you settle, and it does not typically alter your rate or fees. Anything beyond that is agreed with you in writing first.
Send through your financials or your build contracts, and we will tell you what you can borrow and which lender suits your structure. Call us on 1300 562 696.
We arrange finance along the coast and through the Geelong region. Browse the areas below, or head back to the Surf Coast mortgage broker page.
Victoria’s second city, from period Newtown homes to the Armstrong Creek estates.
The coastline from Torquay to Lorne, where holiday homes outnumber commuters.
Bush and beach, older holiday houses on big blocks, and plenty of rebuilds.
Steep hillside blocks above the Great Ocean Road, tightly held and rarely traded.
Two years of trading with financials to match suits the broadest range of lenders. Some will consider one full year, particularly where you previously worked in the same field as an employee, and a smaller group assess from business bank statements under alternative documentation policies. The shorter your history, the narrower the panel and generally the higher the rate, so it is worth knowing the options before assuming you must wait.
Add-backs are expenses deducted in your financials that a lender is prepared to treat as income for servicing purposes. Depreciation, one-off costs, superannuation above the compulsory rate, interest on debts being refinanced and a working director’s wage are common examples. Which ones a lender accepts varies, and on an established business the difference between the most and least generous policy is frequently substantial.
That is the usual arrangement, and the interest-only structure during construction is designed for it. Repayments start small because only the land and deposit have been drawn, then rise at each stage. The lender still needs to see you can carry rent alongside the construction interest and then service the completed loan on principal and interest. We set out the figures stage by stage before you commit.
The criteria are the same but the thresholds tighten. Above certain loan amounts lenders reduce their maximum loan-to-value ratio, order a full valuation rather than a desktop assessment and refer the file to a more senior assessor. Some step back from higher-value coastal lending altogether. We identify which institutions remain comfortable at your loan size before an application goes anywhere.
For most lenders, yes, and lodging late is one of the more common reasons a self-employed application stalls. Where the most recent year has not been lodged, some lenders will work from the prior year plus an accountant’s declaration, and alternative documentation options exist. It is far simpler to bring the lodgements up to date before applying, and we will tell you which gaps actually matter.
