Self Employed Mortgage Broker

Unravelling The Maze Of Home Loans For The Self Employed ​

Hello, all you entrepreneurs, freelancers, and small business owners! We know how hard you hustle. But when it comes to buying a house, you might find that your self employed status becomes more of a hurdle than a highlight. This is why you need a self-employed mortgage broker, like us at OzBroker, who specialises in helping people just like you. Don’t worry; we’ve got your back!

How Much Can You Borrow?

1. Less than a Year of Self-Employment: If you’re still fresh into your self-employed journey—less than a year—you can borrow up to 80% of the property’s worth.
2. One to Two Years of Self-Employment: After your first year, you can aim to borrow up to 95% of the property’s value.
3. Low Doc Loans: For those who don’t have a lot of income proof, you can still get a loan for 80% to 90% of the property’s value.

Will You Get Approved?

Different lenders have different rules. Many require two years’ worth of tax returns, but we can find lenders who are flexible. They might accept just one year’s tax returns or other income proof. Some will even consider you if you’ve recently switched to self employment but are in the same industry. Lenders also like properties that are self contained and prefer smaller property units.

How Long Should You Be Self-Employed?

Although many lenders prefer a two to three-year track record, there are lenders who can work with just a year of self-employment. If you’ve hit that one-year mark, you’re ina much better spot!

If You’re a Newly Self-Employed

If you’ve been your own boss for less than a year, options might seem limited. Traditional banks might turn you away, but some of our lending partners are willing to look at your previous job’s income as proof you can handle the loan.

Banks Often Make Mistakes, But We Won’t

Banks sometimes fumble with complex income structures. At OzBroker, we dig deep into the details. Whether it’s explaining complex trust structures or pointing out benefits like company cars, we make sure the lenders get your financial picture right.

How Is Your Income Calculated?

Lenders use tax returns to judge your business’s health. Some lenders use your most recent year’s income, while others might take an average. We strategize to pick the lender who will give you the best deal based on your documents.

Policy for Self-Salaried Individuals

One of our lenders has a simple policy:

2 payslips or 3 months’ salary credits, along with an Accountant’s Letter. Treats all self-salaried income like a regular job (PAYG).

What Lenders Think

Lenders often consider self-employed folks riskier. This mindset can vary by industry, with construction being less favoured compared to, say, an accounting firm. But don’t let this dishearten you; we see the value in all profitable businesses.

Tax Returns and Their Importance

Your tax returns help the lender understand your income and the health of your business. Some even look at unusual expenses and add them back to your income to better understand your true earning capacity.

Low Doc Loans

Some lenders offer low documentation loans, where you can avoid submitting tax returns by signing an income declaration. Be aware that these may come with higher fees.

Avoid Business Banking

If you have a residential property as security, aim for a home loan, not a business loan, to get better rates.

Securing a Home Loan When You’re Self-Employed: Overcoming Challenges with the Right Mortgage Specialist

When you’re self-employed, getting a home loan can be a challenge, but it doesn’t have to be a roadblock. With the right self-employed mortgage specialist by your side, you can navigate the loan landscape with ease.