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self employed mortgage

Self Employed

Loans for the Self Employed

Being self employed often means that people struggle to get loans. Often this is because your accountant try's to legally minimise your income to save you paying any more tax than you should.  This is a common occurance and sometimes means that borrowing might be difficult.

We commonly plan with self employed clients and their accountants to allow them to present financials and tax returns to allow then to meet their lending needs. 

Low Doc Loans

Self employed tax payers have later deadlines to lodge tax returns by the tax office (than regular employed PAYG tax payers) meaning that these returns my have not been prepared or even lodged to the tax office yet?  If this is the case, we might look at a "Low Doc Loan" for these clients.

Lenders will have an alternate method of assessing income for clients taking out Lo Doc Loans.  For example, they might allow borrowers to sign a declaration of income and check this against historical business activity statements (BAS returns) to confirm business turnover to support self certified income and loan affordability. Alternatively, they might also request a signed statement from your accountant.

As a result of providing less documentation the bank will generally charge a higher interest rate, and / or additional fees because there is a higher perceived risk with applicants using this method.

Ideally, we would recommed a full doc loan, however not everyones circumstances are the same and a Lo Doc loan might be the only alternative.

If you're self-employed, we can guide you through the process and help you find the right loan so talk to us today, or request a call back today for further details.