Getting a loan while being self-employed should be simple.
Understanding how your business operates is the first step towards assisting you to obtain your desired loan. This understanding allows us to present your application to the lender correctly, so they get the full picture of you as an applicant giving them more confidence in your ability to repay the loan.
We will work with you and your accountant to gather all the required information and documentation from the lender.
How long do I need to have been self-employed?
Usually lenders require you to be self-employed for a minimum of two years to demonstrate enough history to give the lender confidence around your income.
A handful of lenders with niche policies are happy to accept less than two years’ worth of self-employment history in as recent as six months. However, these lending options can attract higher interest rates and fees as they are high risk to the lenders.
Lenders also make mistakes when viewing self-employed income
Often, it comes down to a lack of understanding from the bank when it comes to your self-employed income. A bank will rarely take the time to work with your accountant to get a full understanding of your potentially complex structures. This can result in the bank not maximising the income they take into consideration when assessing your loan application. Inovayt’s combined 100 years+ of self-employed and business banking experience ensures that we don’t leave a single dollar unaccounted for and this can mean the difference between you achieving your financial goals.
Low Doc options
Low Doc loans allow you to apply for a loan without supplying recent tax returns or financial statements.
These loans require other forms of income verification such as accountant’s declaration, Business Activity Statements and Business Banking Statements to name a few.
With reduced income verification by the lender, these products are considered higher risk which means they attract higher interest rates, a larger deposit and Lenders Mortgage Insurance (LMI).