As a small business owner, freelancer, start-up owner, or self-employed, you might know how difficult it is to attain the dream of owning a home in Australia. Since the self-employed borrower has a complicated financial situation, many lenders or major banks hesitate to provide loans due to your unstable earnings. However, you can still process Self-employed home loans in Australia when you can afford to meet mortgage repayments in the future.
Below Are the Tips for Getting Self-employed Home Loans
Look For the Best Deal
When it comes to getting the best home loan in Australia, don’t just go to the same bank or lender. Comparing lenders’ home loan criteria and interest rates should be your first priority as a borrower. Since lending loans to the self-employed is risky, they provide it at high-interest rates. However, you can take the help of a mortgage broker or Repayment calculator Anz to determine whether the loan suits your financial circumstance.
Update Your Financial Information
In order to access a home loan as self-employed, you need to show proof to your lender that you’re able to support the income you declare in the mortgage application form. So, to get approval from the lender easily, take the help of your accountant for two years to manage your financial statements, profit/loss statements, income tax returns, and more.
Boost Credit History
Credit history has always been an important factor in borrowing a home loan from a lender. Having a positive score will eventually increase the chance of qualifying for a home loan. A positive credit score assures lenders that the financing will be more apparent and transparent in the future.
On the other hand, a bad credit score can make lenders uninterested in the application. Therefore, to secure a Home loan in Sydney, you need to make sure your credit score is healthy too.
Consider Interest Rates and Fees
If you’re looking to fund your business, you can consider a self-employed business loan. However, with a business loan, the lenders or banks will probably be going to charge a higher interest rate and also need to review your loan annually – this could result in additional fees and time. Along with this, if you’ve residential property as collateral, some Australian lenders will lend you a business mortgage at home loan rates.
How Your Finance Adviser Help in Approving Your Home Loan
We are the leading finance advising agency has been serving individual and businesses to accomplish their dream of owning a home and property in Australia. Our qualified and dedicated team of mortgage brokers understand clients' financial needs and do the leg work on behalf of them to ease the loan approval process.
Contact our mortgage brokers to more financial advice.
