Self Employed Home Loans
Self Employed Home Loans: More than 2.4 million Australians are working in the gig economy or run their own small business, a figure that’s on the increase as more individuals address remote and contract work. If you’re one of the several people working as Self Employed, you’ll be wondering whether you’ll be ready to qualify for a prime mortgage. Stable income and tax returns that show steady employment have served as foundational elements within the home buying process. However, you’ll be able to still qualify for a low doc mortgage even when self-employed and do not have up to date financials.
Things to consider when you apply for a self-employed home loan:
- Company and private tax returns: You’ll be more likely to qualify for a self-employed mortgage if you’ve had your business up and running for a minimum of two years. Gather both your company and private tax returns before you speak to a mortgage broker. IF you can’t present lenders with proof of normal income from tax returns you may require a non bank low doc home loan so don’t count yourself out.
- With Low Doc Loans all lenders prefer applicants that have been in business for at least 2 years. They’ll want to measure how your business operates also as how you handle your current creditors. If you’re not paying other debts and private bills, the funder will notice that and should see you as a higher-risk applicant.
- Be transparent during the appliance process. Help your lender understand what your business feels like from the within out by providing them an overview of your business – one that’s growing and other relevant activity. You should even be prepared to provide your own personal bank statements to a lender if required – a healthy bank account and enough to place forward a sizeable deposit will increase the possibilities of qualifying for a self-employed home loan.
- Any credit blemishes will need to be fully explained (you can apply for a credit file here)
Above all it is important to deal with a Mortgage Broker who works with the Self Employed to confirm if you require a Prime Loan or a Low Doc Home Loan.