Can You Get a Home Loan as a Start-up Owner?

Standing your own company and working or earning through it is a great feeling which many Aussies find fascinating. If you have just started your start-up company and are looking for ways to secure a home loan in Australia, you can run into a few problems.   

Many lenders might hesitate to borrow money as you are self-employed because self-employed are at risk of not providing the essential documents demanded by the lender. However, the lender’s criteria could not deprive you of getting a home loan in Australia. There are ways to secure a mortgage even you have not a regular income. 

A self-employed home loan in Australia is the most accessible mortgage option for people who are sole traders and run their own businesses. The loan type doesn’t require additional document work, payslips, or financial statements.  

Here is what you should know about self-employment home loans and the essential tips & tricks to get the loan approved from lenders.  

Do Start-up Owners Borrow from Banks?  

Yes, as a self-employed borrower, you need to put in the extra effort that a regular income holder. Access to self-employed loans doesn’t mean you can simply get approved from banks or lenders. They usually have a stricter loan condition, especially for candidates who own small businesses or start-ups.   

What do You require to Increase Chances of Loan Approval?  

Enhance Loan deposit  

Access to self-employed loans is not as easy as it seems, but depositing a healthy amount can improve your chances of getting a loan. Ideally, putting 20% or more of the property value can significantly boost the chances of loan approval. It will show you as a low-risk borrower.  

Prepare an Inventory of Assets  

To check your credibility, lenders will need to see the proof of deposits. That is why you need to create a list of assets that justify your deposit amount. Assets could be anything, including recent bank statements, existing property, stock and rental properties.   

Maintain Good Credit Score  

Even you are self-employed and have a start-up, a high credit score can boost your chances of accessing a home loan in Australia. A suitable lender will not only run a credit check on you but also inspect the past credit history to ensure you are a reliable borrower. In order to maintain high-credit score, consult the best home loan broker, he will help your enhance credit score. 

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We are known as the renowned financing advising company in Australia. For a few decades, our team of mortgage brokers have been helping clients and natives to find and attain their financial goals.  

Get in touch with Mr Rajan Khatak, our Mortgage Broker Drummoyne, for any financial supervision.