Simplified Self Employed Finance Options

In years gone, the old lending rules around self employed client lending were really strict in how a Self Employed clients income could be verified. The restrictions lenders placed on Self Employed clients felt overwhelming and to be fair, many were outdated.

In recent times, many lenders have changed their policy and stance on how a self employed client income can be verified - and for that rationale, there is now a number of different ways a self employed applicant can verify their income for mortgage purposes.

Now, in some cases, it is still more beneficial to apply for a “full doc” application, however in some cases, it is not. The reason for this is still down to Best Interest Duty, Overall cost and options available in the lending market.

Fast Track - Fast Track Lending can be considered for clients who are able to evidence servicing on their wage/trust income only to their individual Notice of Assessment. Some lenders utilise the average of the 2 years Notice of Assessment.

Alternate Document - Where your business has had changed trading conditions for the better, sometimes using BAS (Business Activity Statements) can verify newer income until the latest tax returns can be completed. This is an alternative lending option than waiting for your next lodged tax returns.

Director Wage Policy - Some lenders will accept a wage only income if you have been paying yourself a wage from your business for a period of 6 months or longer.

1 Year Self Employed - In some cases, lenders now accept 1 year income financials.

As you can see from the list above, there is now a more comprehensive way of verifying business and self employed income. So if you have questions or want to review your options, you can reach out to our team.

We’re here to help!