Looking for a Home Loans for Self Employed? We can help.
How Do You Assist Self-employed Business Owners with Home Loans?
We analyse financial documents and self-employed income to help self-employed business owners get house loans. Our knowledge lets us identify and explain revenue add-backs and one-time expenses to maximise your bank loan opportunity.
We understand each bank’s self-employed income policies and when to apply them. To submit a good and persuasive bank application on your behalf, our team works together with your accountant to understand your financials.
We handle the entire process, saving you time and letting you focus on your business. To assist self-employed clients reach their property goals with confidence, we streamline the lending process and find the finest home loan options.
Is Getting a Home Loan More Difficult for People Who Are Self-Employed?
No, the process can be handled well by an experienced advisor who knows how to read financial records. A broker who has worked with a lot of self-employed applicants will know how to accurately show your financial situation. This knowledge makes sure that problems don’t happen too often, which makes the loan application process go more smoothly.
How long must I have been in business in order to obtain a home loan?
Banks prefer two years of business operation, ABN, and GST registration.
Some exceptions exist. Banks may still evaluate your application if you have extensive industry experience and can demonstrate that your income will rise or remain constant if you start your own firm.
Expert Home Loans for Self Employed - Smooth Home Loans
Securing a home loan as a self-employed individual is entirely feasible with the right support and understanding. With access to specialised loan options and expert guidance, you can successfully navigate the lending process and find a loan that suits your unique financial situation.
Our team of experienced professionals is here to help you achieve your home ownership goals with confidence and ease. Reach out now to get started!
The income verification documents required for self-employed individuals differ from those needed for PAYG clients. Typically, you’ll need to provide:
- The last 2 years of Company/Trust Tax Returns and Financial Statements
- The last 2 years of Individual Tax Returns and Notices of Assessment
All other required documents will be similar to those for any other borrower, regardless of whether the loan is for an owner-occupied property or an investment property.
Banks have various methods for assessing your income:
- Utilising your most recent year’s income.
- Averaging your income over the past two years.
- Considering the lowest year’s income if the latest year’s income is lower than the previous year’s.
- Taking 120% of the previous year’s income if the latest year’s income is higher.
The specific income calculation method used will depend on the bank you choose.
We know that some of our clients may make more money than they bring in from their business. A lot of successful business owners choose to keep their profits inside the company to either spend them or pay less in taxes.
Some banks will let you add proceeds from your business to your personal pay or director’s fees if you own the whole thing or have a big stake in it.
But if you only own a small amount of shares or the bank’s rules don’t allow it, other lenders will only look at the income shown on your personal tax return to determine how much you can afford to pay back the loan.
Absolutely, business loans have the potential to influence your borrowing ability. The magnitude of this impact differs depending on the lender. Certain banks incorporate company loan repayments into their serviceability calculations, but others exclude them.
For standard full-documentation loans, the interest rate is the same for self-employed borrowers as it is for PAYG salaried workers. When you get the loan, the interest rates will be the same as for everyone else.
Why choose Smooth Home Loans?
Australian based
Seek support from our friendly Australian-based lending specialists.
Flexible options
Exploring offset savings or extra repayments? Our diverse loan features fit your needs.
Low interest rates
As an online lender with lower overheads, we pass on savings to you, our customers.