Self Employed Home Loan Options | Our Simple Guide (2024)

Getting a loan while being self-employed should be simple.

Understanding how your business operates is the first step toward assisting you in obtaining your desired loan. This understanding allows us to present your application to the lender correctly, allowing them to get the complete picture of you as an applicant. Understanding who you are will give 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.

Lenders can make mistakes when viewing self-employed income.

Often, it comes down to a lack of understanding from the bank regarding your self-employed income. A bank will rarely take the time to work with your accountant to understand your potentially complex structures thoroughly. This can result in the bank not maximising the income they consider when assessing your loan application. Inovayt’s combined 10 years+ of self-employed and business banking experience ensures that we don’t leave a single dollar unaccounted for, which can mean the difference between achieving your financial goals or falling slightly short.

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 a higher risk, which means they attract higher interest rates, a larger deposit and Lenders Mortgage Insurance (LMI).

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 in 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 a high risk to the lenders.

What our clients say

Helpful resources

Latest Blogs

A Comprehensive Guide to Vehicle Finance for Businesses

April 4, 2024

How to Buy a House: Your Ultimate Guide to Purchasing Property

March 25, 2024

Buying a Home When You’re Self-employed

March 21, 2024

Frequently Asked Questions

How do lenders calculate my self-employed income?

The way self-employed income is assessed varies greatly from lender to lender and therefore the outcome of an application can be drastically different depending on which lender it is submitted to. For this reason, an experienced broker who knows different lender policies is crucial to the success of an application.

What will lenders look for in self-employed loan applicants?

Lending criteria for self-employed borrowers will vary from lender to lender. Some of the main things lenders will be expecting to see are:

Your lowest income figures for the past two years;
Your most recent income as stated on your tax return; or
An average of your income over the past two years.

If your business has suffered through the pandemic, there may be other documents to support your application. An experienced Inovayt professional can assist self-employed borrowers in getting their loan approved.

How soon should I talk to a mortgage broker before I plan to purchase my next property?

As soon as it becomes one of your financial goals, you should reach out to an Inovayt mortgage broker. We will put a plan in place to help you achieve your goal as a self-employed borrower.

Find an Inovayt Finance broker near you

Our team of expert brokers are with you through every step of the way on your home buying journey. Not only do we help you find the right loan, we also stay with you right up until after settlement, helping you navigate stamp duty and other home buying fees.