Navigating Self-Employed Home Loans
Securing a home loan can be particularly challenging for self-employed individuals. At PLS, we understand the unique financial situations of self-employed borrowers and are dedicated to helping you find the best home loan options. Our expertise in self-employed and low-doc loans ensures a streamlined and efficient process tailored to your needs.
Eligibility for Self-Employed Home Loans
When assessing your eligibility for a self-employed home loan, lenders typically consider:
– The length of time your ABN has been registered
– The nature and characteristics of your business
– The complexity of your business structure
Types of self-employed roles include:
– Business Owners: Small and medium enterprise owners, founders, franchise owners, sole traders, and partnerships
– Freelancers and Independent Contractors
– Tradespeople: Electricians, plumbers, builders
– Health and Wellness Professionals: Personal trainers, fitness instructors
– Creative Professionals: Musicians, actors, filmmakers
– Professional Services: Accountants, lawyers, consultants
Requirements for Self-Employed Home Loans
To qualify for a home loan as a self-employed individual, you typically need:
– At least two years of tax returns and financial statements
– Proof of consistent income
– Documentation such as tax returns, financial statements, and business records
We also collaborate with lenders who may accept one year of tax returns or alternative methods of income verification. If you’ve recently started your own business but have remained in the same industry, some lenders might consider your application even without extensive tax returns.
Home Loans for Self-Employed Individuals with Less Than 2 Years
We work with lenders who can approve loans for those self-employed for between one and two years, provided they have been in the same line of work for an extended period and have at least one year of financial records for their new business. For instance, if you’re a tradie who has run your own business for one year after five years of employment, we can assist you.
Home Loans for Self-Employed Individuals with Less Than 1 Year
For those self-employed for less than one year, obtaining a loan can be more challenging due to the lack of tax returns to prove income. However, one of our lenders may consider your income from previous employment, assuming that if your business fails, you could return to a similar salaried position. This consideration allows us to help you borrow up to 80% of the property value.
Documentation Needed for Home Loan Applications To get approved for a full-documentation self-employed home loan, you will need:
- Personal tax returns from the two most recent financial years
- The latest ATO Notice of Assessment or an accountant’s letter confirming that tax returns are final and lodged with the ATO
- Business tax returns from the two most recent financial years
- Business financial statements prepared by an accountant, including Profit and Loss statements, balance sheets, and depreciation schedules from the most recent financial year
- Proof that the business has traded profitably in the two most recent financial years
- An active ABN for at least 18 to 24 months
- For businesses earning over $75,000 annually, BAS lodgements reporting GST collected and claimed
Why Choose PLS for Self-Employed Home Loans?
At PLS, we specialise in helping self-employed borrowers by leveraging our deep understanding of the unique challenges they face. Our team’s expertise in managing complex applications ensures a smooth process, and our firsthand experience running businesses allows us to provide tailored solutions and comprehensive guidance. We take the time to understand your unique circumstances, offering personalised solutions specifically designed for self-employed individuals.
Working with an experienced mortgage broker can significantly improve your chances of securing a home loan. Whether it involves using your financial records, BAS, or consulting with your accountant, we leave no stone unturned to achieve the desired outcome for you.
Running a successful business and securing a home loan can go hand in hand. At PLS, we are committed to helping self-employed individuals find lenders that understand their business performance and financials. Contact us today to explore your home loan options and take the next step toward your future.