Do you run your own business? It’s not always straightforward for business owners to get a home loan.
Lenders typically view self-employed as high risk and require a range of documents like personal and business tax returns and assessments as evidence of income.
emoney can help you find a flexible home loan even if you are self-employed
Our lending specialists can cut through red tape to find you the perfect loan. If you can’t supply 2 years worth of financial documents, we can still assist. With over 25 years experience, emoney are the non-conforming experts and have helped many self-employed borrowers successfully finance their new home.
Our top tips for self-employed
Are you classed as self-employed?
Lenders have specific criteria around self-employment. The first thing you should check is that your lender actually considers you to be self-employed. Contractors or sub-constructors, for instance, may be classed as employees by some lenders.
Depreciation and expense add backs
Don’t forget to include details of add-back expenses and depreciation which can be used to increase your assessable income and determine your borrowing capacity.
Understand what is involved in your home loan
If you have been in business for more than two years, make sure you can provide financial statements, income tax returns and notices of assessment for the last 24 months. Typically, lenders will only accept financial statements that have been lodged with the ATO as evidence of income.
Give an honest account of your income
If you are applying for a low documentation loan the ATO may use your declaration of income to undertake a tax audit. Ensure the amount you declare is the amount you earn to avoid any tax issues down the line.
Review your home loan
Your financial needs will change. Monitor your cash flow and make sure your home loan is structured in a way that provides you with maximum flexibility.