Applying for a loan when you are self-employed can be a little more complex
This is because lenders may perceive you as a riskier borrower as your income may not be as stable compared to someone who works for an employer. However, if you have been operating your own business or contracting for two years with a relatively stable income, you may still put forward a strong application. If you have been self-employed for less than two years, there may still be avenues for you.
Our reach is wider than the standard institutions
LOAN TYPES AND FEATURES
There are a number of loan types available to you. From Low doc to guarantor loans, we'll find the right solution for you.
Home and investment Loans
We have access to flexible lending solutions including Low Doc options.
We have access to flexible lending solutions including Low Doc options.
Low Doc Loans
These loans are available to self-employed borrowers who can't supply the conventional proof of income typically required by lenders. However, we can help you gather alternative documentation to demonstrate your income.
These loans are available to self-employed borrowers who can't supply the conventional proof of income typically required by lenders. However, we can help you gather alternative documentation to demonstrate your income.
Full Doc Loans
Common requirements being: proof that your ABN has been registered for two years, the last two years of personal and business tax returns, balance sheet and profit and loss statements and details of business liabilities.
Common requirements being: proof that your ABN has been registered for two years, the last two years of personal and business tax returns, balance sheet and profit and loss statements and details of business liabilities.
Split loan
You're able to fix part of your loan, while leaving the rest variable.
You're able to fix part of your loan, while leaving the rest variable.
Guarantor Home Loans
A guarantor uses the equity they've built up in an existing property to help you purchase your property sooner. Guarantors could be a relative or close friend.
A guarantor uses the equity they've built up in an existing property to help you purchase your property sooner. Guarantors could be a relative or close friend.
Variable, Fixed Rate, Principal & Interest and Interest Only loans.
Home loans can benefit from a choice of loan repayment options. We'll asses your situation so you can choose the option most suited to your specific requirements.
Home loans can benefit from a choice of loan repayment options. We'll asses your situation so you can choose the option most suited to your specific requirements.
Packaged Loan
Professional packages offer discounts on standard variable and fixed rates, the waiving of fees and, in some cases, great deals on other products from the same lender. A packaged loan usually comes with one annual fee for the bundled products.
Professional packages offer discounts on standard variable and fixed rates, the waiving of fees and, in some cases, great deals on other products from the same lender. A packaged loan usually comes with one annual fee for the bundled products.
Lending to Australian Registered Companies and Trusts
We have access to lenders who actively lend to these financial structures where the major banks don't.
We have access to lenders who actively lend to these financial structures where the major banks don't.
Payout ATO Debt
The ATO typically wants tax debt paid back within two years, which can restrict cash flow. We have access to lenders who will payoff this debt with a long-term loan to assist your cash flow.
The ATO typically wants tax debt paid back within two years, which can restrict cash flow. We have access to lenders who will payoff this debt with a long-term loan to assist your cash flow.
Payout Private Lenders
The number of lenders who payout private debt is small. We can match you with lenders who actively fund borrowers who wish to refinance private loans.
The number of lenders who payout private debt is small. We can match you with lenders who actively fund borrowers who wish to refinance private loans.
Tips to strengthen your application
If you’re looking to apply for a home loan as a self-employed person, there are a few considerations that could help strengthen your application.
- Wait until your business has been operating for at least two years and you have been receiving a stable income.
- Provide documentation of tax write-offs, depreciation, superannuation contributions, interest repayments on loans and one-off purchases that the lender may add back to your income.
- It could help to provide information on your employment prior to becoming self-employed, including income, to demonstrate expertise or the potential to return to another job should your business experience troubles.
- Try to save at least a 20% deposit to show strong saving ability and avoid paying Lenders Mortgage Insurance (LMI).
- Check your credit report and ensure it is correct. If your credit score is low, consider ways to boost it prior to applying. Your broker can help you with this.
