Self-Employed Home Loans
Self-employed home loans are specially designed for Australians running their own businesses. Securing a home loan in Australia as a self-employed borrower can be challenging, but it is completely possible with the right approach and strategy.
Options for Self-Employed Borrowers
- Full Doc Loans: These loans are similar to standard home loans that require complete financial documentation. To qualify, self-employed borrowers need to provide tax returns, profit and loss statements, business financials and sometimes BAS statements.
- Low-Doc or Alt Doc Loans: These are more flexible loans that require minimal documentation. Low-doc loans are designed for self-employed individuals who may not have up-to-date financials. Instead of tax returns, borrowers can provide other evidence like business activity statements (BAS), bank statements and an accountant’s declaration. However, these loans often come with higher interest rates.
Things to Consider for Self-Employed Home Loans
- ABN Requirements – Most lenders require your business to have been operational for a minimum of 24 months. However, some flexible lenders may accept an ABN that’s been active for at least 18 months.
- Credit History – A strong credit history can boost your chances of approval, even if your income fluctuates. Ensure all bills and debts are paid on time.
- Deposit Requirements – Self-employed borrowers may need a larger deposit than traditional applicants. A minimum deposit of 20% is often ideal, as it increases approval chances and removes the need for Lender’s Mortgage Insurance (LMI).
Schedule a Free Consultation
Are you self-employed running your own business and not sure where to start?
Get in touch today by completing the form for an obligation free chat with an experienced mortgage broker who can guide you through the loan process with ease.
Available for face to face consultation in Tallawong, Riverstone, Marsden Park, The Ponds, Kellyville, Rouse Hill and Stanhope Gardens.
