Applying for a loan when you are self-employed can be a little more complex than someone who has an employer. This is because lenders may perceive you as a riskier borrower as your income may not be as stable.
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.
The documents you need to submit are lender dependent, which helps them determine your average income and ability to repay the loan. If you are a sole trader, we collect your latest one-year personal tax return, your latest ATO notice of assessment and either a 12 months’ Business Activity Statements (BAS) or a second year’s tax return.
You may also be asked to provide bank statements which demonstrate your savings behaviour. To compliment this, you will also need to provide two forms of identification, one of which must include your current residential address.
The lender will want to know about your assets (such as cars), superannuation balance and investments (such as shares), as well as liabilities such as credit cards, loans or debts. On top of this, you will be asked to provide a breakdown of your regular expenses such as groceries, insurance premiums, utility bills, transport, entertainment, clothing, childcare and subscriptions.
If you have already signed a contract to purchase a home, you will be required to provide the contract to the lender, and some may also require evidence you have taken out building insurance on the property.
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.
Another way to help strengthen your application for a loan is to have a broker on your side. A broker understands the requirements of different lenders, helping find the right solution for your needs.
There are a number of loan types available to you; variable rates, fixed rates, guarantor loans and more, scroll through some of the options below to get a better understanding of what the differences are. We’re here to answer your questions when you’re ready.
As the name suggests, the interest rate can change over the life of the loan. This gives you flexibility, but can also leave you open to rate rises. These loans offer more flexible features like unlimited additional repayments, redraw, and offset accounts.
Basically, this is the opposite of a variable rate loan. Your interest rate and repayments will stay the same during the fixed term, no matter what. So no surprises.
You’re able to fix part of your loan, while leaving the rest variable.
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.
Also known as ‘honeymoon’ loans, these offer a low interest rate for a short period (eg. a year), after which the rate moves to the standard variable rate.
As the name suggests, you only pay the interest on the principal balance for a set term, with the principal balance unchanged.
A guarantor uses the equity they’ve built up in an existing property to help you purchase your property sooner. Guarantors could be your parents, parent-in-law or a step parent or grandparents.
Use these calculators to help you understand your borrowing power and calculate how much stamp duty you might need to pay.
Your borrowing power is a critical number to know because it helps you understand how much you can spend on a property. Find out how much you can borrow now.
Find out how much budget you need to set aside to cover Stamp Duty costs and what the requirements are in your state or territory.
It all starts with taking about one minute to answer a few simple questions right here. When you’re done, we’ll meet to talk about your goals, opportunities and next steps, in person or online.
Once we know what you need, we’ll research 60 banks and lenders to provide you with loan recommendations best suited to your needs.
Found your lender? Well sit back. We’ll do the paperwork and package, sign and lodge your documents to get you primed and ready for pre-approval.
If your pre-approval gets the tick, your borrowing power will be revealed. This amount is valid for three months and gives you a clear idea of what you can spend. Let the house hunting begin!
After all the ups and downs of the home buying hunt, you’ve found a home and made an offer. While you pop the champagne, we’ll keep track of your application to ensure it all runs smoothly.
Get excited, it’s time for settlement. Sit back and enjoy the moment, we’ll let you know when everything is finalised and your lender has released the funds.
Typically lenders ask for 20% of the total house price before they’ll consider giving you a loan but there are a number of ways around this. Some lenders will accept a smaller deposit but it’s likely that you’ll need to pay Lenders Mortgage Insurance (LMI). There might also be grants that you can take advantage of. Get in touch to chat about your options.
Of course! Borrowing capacity refers to how much you can borrow from a lender. To get an estimate of your borrowing capacity go to our calculator: How much can I borrow? If you want to get an in depth review of your borrowing capacity, get in touch today.
With over 60 lenders, you and I are spoiled for choice. I narrow my search down through talking to you about your wants and needs. I will show you your options, listing the pros and cons of each loan and ultimately we will come to a decision together.
Call us: 1300 366 287
Email: hello@17thave.finance
Address: lvl 5 151 Pirie street, Adelaide SA 5000
Make it happen. Whether you’re buying your first home, upgrading to the next one, refinancing, or financing a car, we’re ready when you are. Share your goals with us & we’ll connect you with a broker who works for you.
