Quick answer
An accountant's letter is a short signed statement from your accountant confirming details about you or your business, such as how long you have traded, your ABN and your income. Lenders sometimes accept it for low doc loans in place of full documents. Ask your accountant early, tell them the lender's wording, and allow time for review.
Key points
- It is a short signed letter from your accountant, often used for low doc and self-employed loans.
- Wording and requirements differ by lender, so confirm the lender's format before you ask.
- Your accountant can only confirm what they can properly support from your records.
- Allow time, because accountants are busiest around tax deadlines.
- Not every lender accepts a letter, and some still want tax returns and BAS.
What is an accountant’s letter?
It is a short, signed letter from your accountant confirming facts about you or your business. Where a salary earner proves income with payslips, a self-employed borrower may not have anything so tidy. A lender who is happy to consider a smaller set of documents may accept a letter from a qualified, independent accountant who knows your financial affairs. This is common in low doc lending, and you will often hear it called an accountant’s declaration or accountant’s certificate.
The letter is not a magic key. It is one piece of evidence, and what it needs to say depends on the lender.
What does the letter usually confirm?
The exact content varies, but lenders commonly ask the accountant to confirm points like:
- The accountant’s name, firm and contact details.
- How long they have acted for you.
- Your ABN or business registration and how long it has been active.
- The nature of the business and how long you have traded.
- Whether your tax returns and BAS are up to date and lodged.
- An indication of your income or turnover, based on records they have seen.
- Whether they are aware of any outstanding tax debts.
Not every lender asks for all of these. Some want specific wording. Our guide on low doc requirements explains how a letter fits into the wider bundle.
When do lenders ask for one?
Typical situations:
- Low doc home loans, where full tax returns may not be available. See low doc loans.
- Newly self-employed borrowers, who may not yet have two years of returns.
- Business loans where the lender wants confirmation of trading history.
- Private lending where speed matters and a lender relies on a letter alongside other evidence. See low doc private mortgages.
- Applications where a lender wants to confirm the books are up to date.
If your tax returns are in order, many lenders prefer those, along with notices of assessment. Our guide on getting your last two years of tax returns covers that route.
How do I ask my accountant for the letter?
- Find out what the lender wants. Ask your broker for the lender’s wording or template, and whether they have requirements on the accountant’s qualifications.
- Contact your accountant early. Say what the letter is for and when you need it.
- Share the template. Giving them the lender’s wording saves back-and-forth.
- Make sure your records are up to date. Your accountant can only confirm what their records support. If lodgements are behind, they may need to catch up first.
- Ask about the fee and timing. Letters are usually a paid service.
- Check the draft. Make sure names, ABN and dates are correct, and that it is signed and on letterhead.
Tax time and BAS deadlines are the busiest periods for accountants, so ask well ahead.
What can an accountant honestly say?
An accountant can confirm what they can support from the records and their knowledge of your affairs. They will not sign something that is not true, and you should not ask them to. A letter that overstates income or trading history does not help you, because lenders may verify details, and a false statement can end an application. If the true position is smaller or newer than you hoped, say so to your broker. There are lenders who deal with exactly those situations.
What if I do not have an accountant?
You have a few choices:
- Engage a registered tax or BAS agent. The Tax Practitioners Board maintains a public register where you can check that an agent is registered.
- Use another qualified professional if the lender accepts it. Requirements differ, so confirm first.
- Offer other evidence. Bank statements, BAS and tax returns may work instead. Our guide on proving income without payslips sets out the options.
- Ask a broker about alt-doc routes that rely on bank statements and a declaration instead.
Choosing an accountant just to get a letter is not ideal if you have never used one, as they will need time to learn your affairs. A broker can tell you whether there is a simpler path.
Who suits this guide?
- Self-employed borrowers, sole traders and contractors.
- Business owners applying for a business loan or a home loan.
- People who have been asked for “an accountant’s letter” and are unsure what that means.
- Borrowers with less than two years of tax returns.
- Anyone working out how to prove income without payslips.
What other documents might go with the letter?
| Document | Why it helps |
|---|---|
| Bank statements | Shows how income arrives and how money moves |
| BAS or activity statements | Shows recent turnover and GST |
| Notices of assessment | Shows income assessed by the ATO |
| ABN registration details | Confirms the business has existed and for how long |
| ID and existing loan statements | Standard for most applications |
See how to get your BAS and financial statements for the business side, and self-employed home loans for how lenders assess it.
Mistakes to avoid
- Asking for the letter before knowing the lender’s required wording.
- Leaving it to the last week.
- Asking an accountant to say more than their records support.
- Using an accountant the lender will not accept.
- Forgetting that the letter has a shelf life. Lenders may want it dated recently.
An illustrative example
A self-employed electrician has been trading under his own ABN for a couple of years but has only one return lodged. His broker identifies a lender that will consider an accountant’s letter with recent bank statements and BAS. The electrician sends the lender’s wording to his accountant, who confirms the details from their records. The lender sees consistent documents and assesses the application. This is illustrative only, describes no real person and promises nothing.
How does Ownright help?
We tell you which lenders accept a letter, what it must say and what else goes with it, so your accountant writes it once. Trevor Scott and the team at Ownright Custom Finance work Australia-wide from Knoxfield, Victoria, with self-employed borrowers, contractors and business owners. We look at self-employed loans, low doc business loans and more, and if your paperwork is thin we will say what is realistic.
Is a letter the same as a tax return or a financial statement?
No. A letter is a confirmation from a professional, while tax returns, notices of assessment and financial statements are the underlying records. Lenders who accept a letter for a low doc application are effectively relying on the accountant’s professional judgment in place of the full set of documents. That is why they often care about the accountant’s qualifications and independence, and why some will not accept a letter from a relative or a business partner.
If you do have recent returns and notices, you may not need a letter at all. Our guide on how to get your notice of assessment shows where to find yours. A broker can tell you whether the lender prefers documents or a letter, and the answer can differ for the same borrower between lenders.
How long is a letter valid?
Lenders usually want a recent date, because the letter is a snapshot. A letter signed many months ago may be rejected as stale, and one dated close to the application is safer. Check your lender’s rule before you pay for it. If your application runs long, ask whether a refresh will be needed.
What if the accountant’s records do not support the letter I need?
Then the honest options are to update the records, change the loan structure or choose a different lender. For example, if the business is newer than the lender’s minimum trading period, a different lender with a shorter requirement may be a better fit. If returns are not lodged, lodging them first usually helps. And if income has dipped, a lender who looks at current bank statements may read the situation better than one who needs two full years of returns.
Our self-employed home loans page and low doc home loan checklist show the shapes these applications take. We never ask you to say anything that is not true. We help you find the lender whose policy matches your facts.
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Frequently asked questions
What is an accountant's letter for a loan?
It is a signed statement from your accountant, usually on letterhead, confirming facts about you or your business that the lender wants verified. Common points include how long your ABN has been active, how long you have traded and your income or turnover. Lenders use it mainly for low doc and self-employed applications.
Do all lenders accept an accountant's letter?
No. Some lenders accept it in place of tax returns for low doc loans, some want it alongside other documents, and some do not use it at all. The required wording and the accountant's qualifications also vary, so confirm with your broker before you ask for one.
How long does it take to get a letter from my accountant?
It depends on the accountant and the time of year. A simple letter can be quick if your records are up to date, but if returns or BAS are behind, the accountant may need to catch up first. Ask early and allow extra days around tax deadlines.
What if I do not have an accountant?
You can find a registered tax or BAS agent, or an accountant who is a member of a professional body. The Tax Practitioners Board register lets you check an agent is registered. A lender may also accept other evidence, so ask your broker what is available if you prefer not to engage one.
Will my accountant charge for the letter?
Many accountants charge for it, since they need to review your records before signing. The amount varies, so ask upfront. A broker can tell you the lender's requirements so the accountant provides exactly what is needed once, rather than rewriting it.