If you are self-employed, you may be wondering about your home loan options.
It’s no secret that applying for finance when your income can fluctuate from month to month is a challenge – but fortunately there are a number of great home loan choices designed specifically for self-employed people that may meet your needs.
Challenges for self-employed borrowers
Self-employed people are usually challenged by two problems – inconsistent income history and the volume of paperwork that they need to provide to meet the evidence requirements set out by most lenders.
But in recent years, a number of innovative lenders have stepped in to develop home loan products that are designed specifically with the self-employed in mind.
Choices and lending criteria
Like standard home loans, self-employed home loans are available for both owner-occupiers and investors, and borrowers can choose from fixed or variable interest rates.
And while application requirements will vary from lender to lender, typically you can expect to be asked for at least 12 months’ worth of Business Activity statements or a letter from your accountant, evidence of any existing loans being refinanced from the past six months, and in some cases, a signed certificate declaring your income and the details of your self-employment or small business.
Help from a mortgage broker
If you are thinking about applying for a self-employed home loan, it’s important to seek out help from the experts.
The process of applying for a self-employed home loan can be complicated, but an experienced mortgage broker will be able to help you navigate through the system and find the product that works best for you.
And as structuring home loans for self employed Australians can be a complicated process, having the right help onhand can give you the peace of mind you need as you prepare to become a homeowner.
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.