Self-Employed Loans
If you’re self-employed, navigating the mortgage process can be tricky, but with the right guidance, getting a home loan is totally doable. We’re pros at understanding the unique financial situations of self-employed Aussies.
Whether you’re buying a home, investing in property, or refinancing, we know your income might not look like a regular pay cheque. We take the time to get to know your business and dive into your financial statements, tax returns, and other key docs to get a full picture of your financial health.
Our experienced brokers get the challenges you face, like fluctuating income and complex tax setups. We’re here to help you overcome those hurdles and secure the loan you need.
Challenges for Self-Employed Applicants
- Fluctuating Earnings: Self-employed individuals often experience variable income, which can complicate the assessment of loan affordability.
- Irregular Payment Cycles: Payments may come at irregular intervals, adding another layer of complexity to financial planning.
- Documentation Requirements: Lenders typically require detailed proof of income. This can mean providing tax returns, business accounts, and financial statements for the past two years or more.
- Consistent Record-Keeping: Maintaining accurate and consistent financial records is essential, yet challenging for many self-employed individuals.
- Stricter Criteria: Lenders typically want to see a minimum of 24 months ABN registration, plus at least 1 full years financials. This is important to keep in mind if you’re considering switching from a PAYG employee to self employed.
- Higher Interest Rates: For self employed borrowers that can’t supply the above (acceptable ABN registration timeframes, financials etc), then self employed borrowers can still get a loan, however they’ll face higher interest rates due to the perceived higher risk.
Loan Application Process for Self-Employed People
- Understanding Your Needs: We start by discussing your property goals and reviewing your financial situation. This helps us understand what you’re looking for in a loan and how best to approach lenders.
- Advising on Documentation: We’ll explain exactly what documents you’ll need to prepare to present a strong case to lenders.
- Setting Expectations: We outline the process and set realistic expectations for timelines and outcomes.
- Income Verification: We help you compile comprehensive proof of your income, taking into account the nature of your self-employment.
- Credit Check: Understanding your credit history is crucial. We’ll review it together and provide tips on how to improve it if necessary.
- Expense Analysis: We analyse your expenses to provide a clear picture of your financial stability.
- Loan Comparison: We compare various loan products that cater to the self-employed, focusing on those that offer the most favourable terms based on your unique financial profile.
- Pre-approval: Securing pre-approval can give you a clear idea of your borrowing capacity and strengthen your position when making property offers.
- Risk Assessment: We assess potential risks and suggest strategies to mitigate them.
- Documentation and Application: We guide you through the entire application process, ensuring all paperwork is complete and accurate to increase the likelihood of approval.
- Liaison with Lenders: We communicate directly with lenders on your behalf, addressing any concerns they may have about your self-employment status.
- Application Tracking: We track the progress of your application and provide regular updates.
- Navigating to Approval: We monitor the application’s progress and keep you updated every step of the way.
- Closing the Deal: Once approved, we assist with the final steps to secure the loan, ensuring everything is in order for a smooth transaction.
- Post-Approval Support: We offer ongoing support to help you manage your mortgage and financial health.
What to Expect from Your MTM Mortgage Broker
- We understand the nuances of self-employed financial assessments and bring expertise in securing loans that match your circumstances.
- Our brokers stay updated on the latest lending criteria and industry trends.
- Every self-employed client has different needs and financial profiles. Expect personalised service tailored to your specific situation.
- We offer flexible loan solutions to match your unique financial circumstances.
- We keep the lines of communication open, providing clear and regular updates throughout the loan process.
- We ensure you understand each step and the reasons behind every decision.
- As your mortgage broker, we act as your advocate with lenders, ensuring they understand the full picture of your financial health and business viability.
- Negotiation Skills: We leverage our expertise to negotiate the best possible terms on your behalf.
Securing a loan as a self-employed individual requires thorough preparation and understanding of the lending landscape. At More Than Mortgages, we are committed to helping you achieve your property goals with as much clarity and confidence as possible.
Call us or make an appointment with us today to see how we can help you navigate your mortgage options!
