Self-Employed Loans

Self Employed Home Loans

Home loan for self-employed borrowers — Universal Finance Corporation

Whether you own a small business, work as a freelancer or on a contractual basis, there are speciality financial options available to help you secure your dream property. Universal Finance Corporation can help you discover some of the best home loans for self-employed borrowers based on your needs. 


Learn more about self-employed home loans, and get in touch with us today to discuss your borrowing needs. 


How home loans for self-employed individuals work


In an era when contract work or freelancing is becoming increasingly common, many lenders have begun to accommodate borrowers who may not have a typical 9–5 role. Self-employed home loans, or low-doc loans, are designed to cater to the needs of applicants who may not be able to provide the standard documentation required in a traditional home loan. However, depending on your borrowing capacity and loan objectives, many self-employed borrowers may also qualify for full-doc home loans. The team at Universal Finance Corporation can review your financial profile to determine which loan best suits your needs.


Unlike a standard home loan, a self-employed home loan requires a borrower to provide tax returns, profit and loss statements, business financial statements and sometimes a letter from an accountant. This additional documentation helps lenders assess the stability and reliability of the borrower's income, which can be more variable than that of salaried employees.


Unlock fast and flexible lending with Universal Finance


To secure the best self-employed home loan in Australia for your needs, you need expert guidance. This is where the assistance of an experienced mortgage broker can be a crucial ally. Our team understands the unique challenges self-employed borrowers face, such as fluctuating income and complex documentation requirements, and can identify loan options specifically tailored for self-employed borrowers.


We also help you prepare and submit the necessary documentation for your application, while guiding you on how to present your financial information effectively. This ensures you meet the lender’s needs effectively and improves your chances of approval. Our support not only saves you time and effort but also increases your chances of securing a competitive self-employed home loan, making the home-buying process smoother.


Get in touch with Universal Finance Corporation today 


Make your mark on the property market with expert guidance and support. Choose Universal Finance Corporation as your trusted partner during the home-buying process. Connect with one of our mortgage brokers today by calling (02) 9558 9666 or completing an online enquiry form.


FAQs

  • What documentation is required to prove my income as a self-employed borrower?

    As a self-employed borrower, you typically need to provide several documents to prove your income to a lender. Self-employed home loan requirements may include an income declaration, which is a document that verifies the amount you earn and illustrates you can afford the repayments, a registered business name and your ABN, personal bank statements and business activity statements.

  • How is my income calculated for loan qualification purposes?

    To qualify for a self-employed home loan, your annual income is typically calculated by averaging your net profit before tax from the last two years of tax returns. Other lenders may use alternative methods to calculate your income, such as a borrower’s income for one year in isolation, supported by business activity statements (BAS) that illustrate your business’s steady or rising performance. 


    Lenders may also consider other income sources like dividends or any rental income you may earn. This average helps a lender determine your borrowing capacity and repayment ability over the life of the loan.

  • What are the minimum credit score requirements for a self-employed home loan?

    The minimum credit score requirements for a self-employed home loan in Australia vary by lender, but generally, a score of at least 620 is preferred. However, higher scores, typically 700 or above, can improve your chances of approval and better loan terms. Even if you don’t have a high credit score, you shouldn’t rule yourself out. 


    Lenders also consider your overall financial profile, including income stability and existing debt, when assessing your self-employed home loan application.

  • Can I get a home loan with a fluctuating income?

    Yes, you can get a home loan with a fluctuating income. To determine your borrowing capacity during your application, the lender will assess your average income over several years and consider your overall financial stability, including savings and credit history, to determine your loan eligibility.

  • Are there specific loans for self-employed borrowers?

    Yes, there are specific loans for self-employed borrowers, often called low-doc loans. These loans require less documentation than traditional loans and are designed to accommodate the unique income verification needs of self-employed individuals who may not be able to prove a consistent income.

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