Home Loan Tips for the Self-Employed Australians

Being self-employed is undoubtedly an amazing thing– you're your own boss, you set your own hours and decide how you want to work each day. However, just like everything else self-employment also has its own pros and cons. There are several different types of problems associated with being self employed, and every self employed individual in Australia would agree with us on this. These problems range from overcoming the temptation to constantly take four-day weekends to one of the biggest one- securing a home loan.  

Here in this article, we will have a look at why securing a home loan is difficult for self-employed Australians and how these people can overcome this problem.  

Self employed home loan challenges 

When a person is self employed, one of the biggest problems he has to face is the lack of income and employment documentation available with him in comparison to what most nine to five Australians always have. These documents are really important as the banks require these documents for approving a home loan. And since majority of the self employed individuals are unable to produce these documents, it becomes difficult for the banks to calculate the income of self-employed borrowers as compared to regularly employed borrowers. 

However, nowadays luckily with the introduction of self-employed home loan scheme in Australia, the inability of self-employed Australians to apply for a home loan has now been solved. This home loan scheme allows a variety of self-employed individuals such as doctors, lawyers, chartered accountants, engineers and non-professionals such as traders can acquire a home loan to finance their house or property in Australia either individually or jointly. 

There are several lenders, banks and other lending institutions that offer self-employed home loans in Australia. To qualify for these loans, majority of lenders require the borrowers to be self-employed for at least two to three years, however, some lenders may consider offering the loan even if the borrower has been self-employed for only one year, with an ABN registered. 

The documents required for applying to self-employed home loans in Australia are simple. Here we’ve created a complete list of all the necessary documents that a borrower must keep ready with him while applying for the loan.  

ABN: The borrower must have an ABN (Australian Business Number) and/or Certificate of Incorporation. 

Income declaration form: Borrowers must provide a signed document verifying their income since lenders require proof that their borrower can afford the repayments. 

Business activity statements: It is important to provide BAS (Business Activity Statements) of the borrower from the last 6 to 12 months. These must be verified by the ATO. 

Speak with a specialist 

To deal with the complexities of applying to self-employed home loan application in Australia it’s important to seek assistance from a home loan specialist – like Your Finance Adviser. It has a team of the best home loan broker in Australia and professional experts that specialize in providing all types of home loan advice based upon lending guidelines mandated by the major banks & lenders of Australia.  

To find out more about Your Finance Adviser, contact at 1300932276.