SELF-EMPLOYED HOME LOANS MELBOURNE
Self-employment can come with its challenges – including navigating difficult lending regulations.
The Challenges of Self-Employment
Self-employment is an exciting opportunity. More freedom, more room for growth – the benefits can be endless! But there are some definite hurdles involved, especially when it comes to certain financial obstacles. Applying for a home loan is a natural step toward the next chapter of your life, but the application process can be demanding.
If you’re self-employed, this is especially true. How can you prove to home loan lenders that your self-employment can support your application? What makes self-employed home loans so different from standard loaning processes?
What Makes Self-Employed Home Loans So Tricky?
With such extensive time frames, these requirements make it very difficult for self-employed professionals to acquire home loans, especially within the first two years of business. This can also affect your ability to pursue your personal goals such as acquiring your first home and set you back in your life’s progression.
The reason why banks are hesitant to lend to new business owners (less than two years of ownership) is simply that a new business is considered a risk and could jeopardise their investment. Following this ideology, new businesses are sometimes penalised with higher interest rates, or traditional lenders will lend lower LVR’s (loan to value ratios) in the rare case where the loan is approved.
Our Self-Employed Home Loan Options
Home Loans for Self-Employment Over 2 Years
If you have been self-employed for over two years, there are home loans readily available for you. Although it will still take a range of paperwork and information to properly apply, you are at least in a fortunate enough position to have plenty of documentation available.
At Mel Finance, we have extensive experience helping self-employed people find the perfect home loan for their circumstances. This will involve helping you to organise all the different forms of paperwork that will need to be supplied in order to give a comprehensive picture of where your business is at. The paperwork may be extensive, but with our support, you won’t need to worry about a thing.
Home Loans for Self-Employment Under 2 Years
Ready to get your home loans in order? Book your free 15-minute Discovery Call today!
What Do I Need to Apply for a Self-Employed Home Loan?
Cover the basics of documentation and requirements, then stress that Mel Finance can guide you through applying for a self-employed home loan can involve a lot of paperwork. As opposed to your standard fixed-rate home loans, a financial institution needs more information to approve a home loan specifically tailored for a self-employed person. This involves a wide range of different forms and proof of employment, confirming not only your present income rates but also the likelihood of continuing success over the next few years.
This paperwork will likely include:
- Proof that your ABN has a minimum of two years of registration
- Two years of personal income tax returns, business tax returns, and any tax assessment notices
- Business bank statements for the last month
- Details of any external business liabilities, including leases, overdrafts, company loan repayments, hire purchase, and more
- Profit and loss statements covering the last two years
Don’t get overwhelmed by the process. Here at Mel Finance, we have helped countless self-employed Australians navigate the complications of receiving a home loan, organising lenders mortgage insurance, finding the right interest rate, and more. If you’re looking for a home loan specialist to ease the confusion, Mel Finance is ready to lend a hand.
Your Self-Employed Home Loans Questions Answered
The reason why self-employed individuals can sometimes struggle to get home loans is because lending regulations can require specific information which can be hard to obtain when running your own business. This may include 24 months of ABN registration, two years’ worth of tax returns, and a history of financial statements that your growing business may not have. That’s where we can help.
Getting a loan as a sole trader or small business owner may seem more daunting than it really is. There are plenty of loan options available, and the right expert will be able to guide you through the process quite easily.
Generally speaking, there are a few key things you will likely need to provide to prove your self-employment for home loan purposes. This may include providing tax returns, financial statements, business registration documents, and more.
Banks will typically use personal income tax returns to calculate how much you earn and the projected success of your business.
Self-employed borrowers looking for a low-doc home loan are required to have a maximum borrowing capacity of 80%.
Why Choose Mel Finance?
Here’s the Mel Finance difference – we’re local. We know our area and the community, offering local mortgage broker support that is tailored to the unique needs of Melbourne individuals.
Our team puts people first. Our top priority is always to provide services that help people build better futures, with better financial stability.
Large, corporate giants can’t give you that personal touch. As a small, boutique company, Mel Finance is proud to deliver flexible services to suit each unique client.
Build Your Future With a Home Loan
Being self-employed takes courage. If you have built yourself a successful income, you deserve to be able to access an impactful home loan. The specifics of your employment shouldn’t be a hurdle that prevents you from getting the home you’ve been dreaming of. By partnering with a home loan specialist, you can find a home loan that best suits your situation and helps you achieve your goals.
We’ll analyse the options for you and walk you through the entire process, always available to answer questions and compare non-bank lenders, residential home loans, and interest rates until we find the right self-employed home loan for your situation. Your future starts today – and we can’t wait to help you build it.
Book an Appointment With Mel Finance to Find a Home Loan
We would like to thank Lumbini for guiding us along the way to settling my first property. We had a complicated transaction and a tight settlement period and Lumbini went above and beyond to get us settled as quickly as possible. On top of that, Lumbini is very educational and responsive. Overall an exceptional broker and great guy!
March 26, 2023
We recently engaged Mel Finance services and Lumbini has been great to deal with. From start to finish he has explained things well and made sure the journey is as smooth as possible. Highly recommended
February 27, 2023
Lumbini was incredibly helpful in assisting us with our home loan. He is so great in communicating with us, always available when we have questions or needing advice. His service is exceptional and we can highly recommend him to everyone.
May 26, 2023
We purchased an investment through our SMSF and Lumbini was recommended to us. He was amazing in every way. He had things happen very quickly, his communication to us was impeccable to the point that if he emailed us something he would also text us to let us know. He always asked our questions very quickly and helped us understand what we were signing and what the process was. He is very knowledgeable, professional and very approachable. If we would not hesitate to use him again and I would highly recommend him to my friends and family. Thank you Lumbini
May 13, 2022