Simplify Your Self-Employed Mortgage Journey With Expert Guidance
Navigating the world of self-employed mortgage solutions can be difficult, particularly for those who work for themselves and need the standard documentation lenders require.
North Rocks Mortgage understands the problems that self-employed individuals encounter, and we're here to help you navigate the path to house ownership. Whether you're a freelancer, business owner, or contractor, our staff provides personalised advice to assist you in locating the best mortgage option and maximise your chances of approval.
Eligibility Criteria for Self-Employed Borrowers
Lenders often establish precise eligibility conditions for a self-employed mortgage, which may include:
- Length of Self-Employment : Most lenders prefer at least two to three years of trading experience, while some may accept one year of accounts or even fresh starts under particular conditions.
- Income Stability : It is critical to have a steady income throughout life. Lenders may average your wages over the previous two to three years.
- Credit Score : A good credit score boosts your application by demonstrating to lenders that you are a reliable borrower.
- Deposit : A larger deposit, usually 10-20%, increases your chances of getting a better offer.
How Can you Improve your Chances of Getting Approved for a Self-employed Mortgage?
As a self-employed borrower, you can boost your chances of approval by following these steps:
- Consult an Accountant : Discuss your home-buying plans with an accountant to optimise your financial setup.
- Pay Bills on Time : Maintain a strong credit score by paying credit card and loan bills promptly.
- Reduce Debt : Lower your Debt-To-Income (DTI) ratio to appear more financially stable.
- Track Cash Flow : Monitor cash flow trends, save for taxes, and regularly set aside funds for GST.
- Pay ATO Debts : Resolve any tax debts promptly to improve your financial profile.
- Manage Inventory : Avoid cash flow strain by carefully controlling stock levels and ordering only what’s necessary.
- Separate Business & Personal Finances : Use distinct accounts for personal and business transactions to simplify recordkeeping.
- Maintain Financial Records : Keep updated financial documents like invoices, BAS, and bank statements to demonstrate consistent income.
- Provide Business Financials : Supply at least two years of business financials, including tax returns and profit-and-loss statements.
How We Can Help Self-Employed Borrowers
1. Streamlined Income Verification for Self-Employed with Regular
Wages
If you’re self-employed and pay yourself a regular company wage, you may qualify for streamlined
or simplified self-employed income verification. Essentially, lenders may consider your company salary
as sufficient proof of income, bypassing the need for extensive documentation.
2. Navigating Lender Requirements
We guide you through lender-specific requirements, which often include:
- Tax returns and financial statements.
- Business Activity Statements (BAS).
- Evidence of active ABN and GST registration.
3. Low-Doc Loan Options
For borrowers with limited documentation, we can explore low-doc loans that rely on alternative
proofs of income, such as:
- Recent BAS statements.
- Accountant’s declaration of income.
- Evidence of regular business transactions.
4. Improving Borrowing Capacity
We help you maximise your borrowing power by:
- Optimising financial records and add-backs like depreciation.
- Identifying strategies to improve assessable income.
- Reviewing loan structures to suit your cash flow.
5. Long-Term Planning
Whether you're purchasing your first home or refinancing to free up equity, we help structure your loan for long-term growth and stability.
Why Choose Us?
At North Rocks Mortgage Solutions, we offer:
- Expertise in Self-Employed Mortgage : Access to lenders specialising in self-employed applicants.
- Customised Solutions : Tailored loan strategies based on your unique needs.
- Support for Low-Doc Loans : Options for borrowers with limited documentation.
- Guidance Through Conditional Pre-Approval : Know your borrowing power before starting your property search.
Ready to Begin Your Mortgage Journey?
North Rocks Mortgage is dedicated to making the self-employed mortgage process simple and understandable. Contact us today to speak with one of our professional brokers, who will walk you through each step and help you acquire a suitable mortgage. Contact us today to start and take the first step towards your new home.
Other Solutions
Get In Touch
Our Address
Our email
Call Us
