Self Employed Home Loans
Self Employed Mortgage Broker
Many Australians are self-employed (currently there are approximately 2.4 million self-employed workers and business owners). Small business owners and self-employed workers often have the greatest need to borrow money given their business and personal borrowing needs and may have trouble sourcing self employed home loans.
Unfortunately, it’s often these borrowers that find it the hardest to borrow money from banks and home loan lenders. Below we will briefly explore the lending requirements for self employed home loans, why many borrowers find this process difficult and lastly what our self employed mortgage broker specialists can do to get a better result for you.
Ready to get started? Call a self employed mortgage broker from OAK Tree Finances today on 0404 403 066 and we’ll find the perfect home loan for you.
Lending Requirements for Self Employed Home Loans
Most self employed mortgage lenders require an analysis of your last 2- or 3-years financial history. As documentary evidence they require completed tax returns, financial statements and the accompanying ATO notice of assessment. If there are some inconsistencies in the last few years then more recent history can also be requested such as bank statements, BAS statements, a letter from an accountant or even a forecast of your expected future income.
In simple terms lenders try to predict your future income by analysing this history. Ideally, they are looking for two consistent years which is why they sometimes prefer to see three years. If income is decreasing, then they may have concerns that the income won’t be reliable in the future. On the other hand, if the income is increasing too quickly then they may also have similar concerns. Sometimes it may feel like you cannot win.
Making this process harder is the fact that the rules that each lender use can change considerably. One lender may take the lowest of the last two years income and another may rely solely on income received last year. One lender may average the last two years income and another may take 120% of the lowest year.
Certain tax deductions such as depreciation or one-off expenses may be able to be included as legitimate income (EBITDA). Some Lenders may also consider industries differently for example, they may bend their rules and accept one year’s tax returns for an architect but for a cafe or building company that they consider higher risk they may want two years before they will approve a home loan.
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Why is this process difficult?
Buying property can be one of the biggest financial decisions of your life. With hundreds of different home loan products in the Australian market to choose from it’s becoming increasingly difficult to find the right self employed mortgage loan to match your needs and circumstances.
Ready to get started? Call a self employed mortgage broker from OAK Tree Finances today on 0404 403 066 and we’ll find the perfect home loan for you.
What can we do differently at OAK Tree Finances?
Just as important as the numbers themselves can often be the story behind the numbers. For example, if the business has only been operating for a short time, what is the experience and background of the owner? If the business had one year that was worse than the other years, what was the reason why? These discussions often never take place with a borrower and no written explanation is provided to the bank to give them a proper understanding of the situation.
What we can do:
- We’ll take the time to understand your individual situation.
- We’ll provide detailed notes about your business to help self employed mortgage lenders understand your situation.
- We’ll will find the right self employed mortgage lenders and get the best possible outcome.
- We’ll provide transparent feedback about the likely outcome, so you know where you stand.
Self employed refinance loans
If you have an existing loan and are looking to refinance as a self-employed business owner, contact the team at Oak Tree Finances to see if you are eligible for self employed refinance loans. Our team of self employed home loans specialists will help find the right loan options and prepare the documents needed to apply for the best loan to suit you.
Ready to get the best in self employed mortgage finance? Make an appointment or call our home loans Gold Coast team on 0404 403 066 to discuss your unique circumstances with a self employed mortgage broker today.
Frequently asked questions
Yes you can! You can get the same rates and options as anyone else. The only difference is the rules are more complicated but an experienced self employed mortgage broker can provide you straight forward advice and answers. Oak Tree Finances will take the time to look over your business and provide you with the best self employed home loans for your unique situation.
For self employed home loans you are generally required to have a few years history in your business and lenders want to look at your average earnings over 2 years tax returns. If you do not have this there are a lot of other options with some lenders only requiring 1 year tax returns or more straight forward options where you do not need to provide tax returns at all.
Speak to us about your plans and current business and during an initial consultation we can help you understand the best option for your situation. As an expert self employed mortgage broker we can make this process simple and make it straight forward for you to understand your options but it is an area where you need advice based on your unique situation.
Banks and all home loan lenders are very active in providing self employed home loans to borrowers. Common issues are that borrowers either haven’t been in business for long, their income has not been consistent or sometimes they simply have a complicated business structure and require expert assistance. Whatever the reason an experienced self employed mortgage broker should be able to give clear guidance as to what is possible and if your situation does not fit the normal guidelines they should be able to advise on what alternate options are available.
This will ultimately depend on several factors and in this area you really need to get a self employed mortgage broker to assess and evaluate your unique situation. With a self employed home loan there is often a big difference between how different lenders will assess your situation. You can rely on our expertise to evaluate multiple lenders to get the best outcome. Speak to Oak Tree Finances today by calling 0404 403 066.