What Is Self Employed Lending

There is no denying that banks and lenders will look at your application differently if you’re a business owner or self employed. If you are an employee a lender will only need evidence of that and your personal financial details to make a decision on lending. When you work for yourself a lender will also consider the financial position of your business. 

When you are self employed banks and other lenders consider your income as ‘unpredictable’ and therefore cosider you a higher risk. This often comes at a price in the form of higher interest rates or risk fees depending on the lender. 

If we can adequately demonstrate to a lender that you are a safe investment for them then there is a better than average chance that your loan will be approved, when you are self employed are extra checks and balances in place during the application process to get that approval. 

What do you need to apply for a home loan? 

The things listed here are some of the things we will need to start your home loan application if you are self-employed. 

• Upload Two forms of ID (Drivers Licence back and front please on a white background so dates show up, Passport, Passport, property rates notice, Medicare card etc.) 
• Upload Last two personal tax returns each and the notices of assessment for both. 
• Upload Last 4 quarters of BAS. 
• Upload Last two company and/or trust tax returns. 

What matters most is that you can demonstrate consistent income, business growth and a long term trend of increased earnings. It’s also vital to make sure your records are accurate so that we can make an informed decision about your circumstances and recommend the correct lender for your needs. 

If you’ve only been self-employed for a short time we have options like low doc loans, but that’s something we will explain to you onces we’ve discussed your full situation. Please know that not all lenders allow low doc loans, it’s up to the lender’s discretion to decide on your loan application. 

Please get in touch to see how we can help you with your lending for the self-employed.