Fill in your name, phone number and email and we will send you a form to fill in so that we can look at your situation.
You can print it out and fill it in manually or fill it in directly.
If you have done your Tax Returns and Financials and are showing good income for the last 2 years, the process and Interest rate will be the same as a normal Home Loan.
But Self-employed borrowers often come up against the challenge of not being able to present a raft of payslips and tax returns to back up their loan applications. This need not stop you buying your dream home.
Many lenders offer low-doc or Alt-Doc loans for self-employed borrowers who can’t hand over Tax returns, Financials or haven’t been in Business for 2 Tax return periods. This means that, rather than the usual documentation, you prove your ability to service a loan using bank statements, GST BAS reports, and a declaration from your accountant.
Of course, as with any mortgage application, you must still prove that your income outstrips your spending and you can service the loan. Getting this right is more than presenting a lender with a few quick sums on the back of a napkin; it takes preparation.
Here are some quick tips to help get you that loan:
pay down credit cards and personal loans, and be sure to lower the credit limits as they are paid down, as lenders assess the total credit available to you as a potential debt level, not just the amount you owe.
If it’s a refinance we can look at consolidating these Debts into the home loan to increase serviceability
Low-doc loans do differ from standard loans in a few ways, apart from the application process. Lenders offset the extra risk they are taking by lending to a self-employed borrower or contractor by charging slightly higher interest rates and placing some extra rules on loan-to-value ratios (LVR) and insurance requirements.
Generally, you can expect an interest rate for a low-doc loan to be one to two percentage points higher than for a full-documentation loan.
Most lenders will also insist on an LVR of no more than 80 per cent – meaning that under no circumstances will they lend more than 80 per cent of the property value, as assessed by the lender.
In cases where the loan amount is for more than 60 per cent of the property’s value, some lenders also require self-employed borrowers to pay for lenders’ mortgage insurance.
But the Lenders are all super competitive at the moment so these restrictions may change.
Customer Enquiries: 1800 825 010
Admin Office: 0243696287
Post: PO Box 6100, Kincumber, NSW, 2251
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