Home Loans for Self-Employed Australians

Self-Employed Home Loans

Getting a Home Loan When You Work for Yourself

Being your own boss is fun, no one will give you a hard time for being late at work! But we know getting a home loan can be tricky. Don’t worry, we understand the challenges of being self-employed. We’re here to help you through the home loan process and find the right loan for you.

Let us help you with the home loan process by giving you expert advice.

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We are always ready to solve your problems.

What are Self-Employed Home Loans?

A self-employed home loan is like a regular home loan but designed for business owners and freelancers. As you’re self-employed your income is not steady, it changes almost every time while the lenders prefer stable incomes. So, lenders have come up with different rules for checking how much you earn. They might look at your tax returns or bank statements to understand your finances better.

How It Works:

Lenders might ask for your tax returns, business finances, or bank statements instead of regular payslips to verify your income.
If it’s hard for you to provide the usual documents, you may qualify for a low doc loan, which
generally requires less paperwork but might have different terms.

Understand the ins and outs of getting a home loan when you’re self-employed.

Are Low Doc Loans Right for Me?

Low doc loans are perfect for self-employed people who might not have all the traditional
paperwork that full-time employees do. With a low doc loan, you can use alternative forms of
income verification, like bank statements or an accountant’s letter, to secure a loan.

Who They're Best For:

Freelancers or contractors with irregular income.
Business owners who reinvest their profits back into their business.
Self-employed individuals who find it hard to provide standard income documents.

See if a low doc loan is the right fit for your situation.

What Documents Do I Need?

Getting a self-employed home loan usually requires different documents than a regular home loan. Here’s what you might need:

ABN/ACN: Your Australian Business Number (ABN) or Australian Company Number (ACN).
Tax Returns: Up to two years of personal and business tax returns. Some banks can work with 1 year tax returns as well.
BAS Statements: Business Activity Statements (BAS) from the last 12 months.
Bank Statements: Personal and business bank statements to show your income flow.
Accountant’s Letter: Sometimes a letter from your accountant can verify your income and financial health.

Make sure you have everything you need to apply for a self-employed home loan.

Lending Criteria for Self-Employed Home Loans

Lenders have specific criteria when it comes to approving self-employed home loans. Here’s what they typically look for:

Income Stability: Lenders want to see that your business generates a consistent income.
Asset Position: Your current assets and savings can help demonstrate your financial security.
Credit History: A good credit history is crucial, even if you’re self-employed because lenders will check your personal and business credit history.
Deposit: Having a good deposit can improve your chances of approval.

Find out what lenders look for when approving self-employed loans.

Pros and Cons of Self-Employed Home Loans

Pros:

Flexibility in Income Verification: Can use a variety of documents to prove your income – Income tax returns, regular pay slips, business financials, , bank statements, BAS
Various Loan Options: Browse through a range of loan options that are perfect for self-employed people like you.

Cons:

Higher Interest Rates: Sometimes, self-employed loans may come with slightly higher interest rates.
Larger Deposits: You might need a bigger deposit (especially if you opt for a low doc loan).

Here are the pros and cons of getting a self-employed home loan.

Can I Get a Home Loan If I've Been Self-Employed for Less Than a Year?

If you’ve been self-employed for less than two years, securing a self-employed home loan can be more challenging, but it’s not impossible. Some lenders may consider your application if you can demonstrate stable income from a previous job in the same field or if you have a solid financial history.

Let’s explore what’s possible if you’ve recently become self-employed.

Which Lenders Offer Self-Employed Home Loans?

Not all lenders offer self-employed home loans, but at Nfinity Financials, we work with a range of lenders who understand the needs of self-employed borrowers. We’ll help you find the right lender and loan that matches your financial situation.

We’ll connect you with lenders who specialize in self-employed home loans.

Have Questions About Self-Employed Home Loans?

We’re here to help! Feel free to contact us if you need help submitting an application for a self-employed home loan.