Simplified Self Employed Finance Options
Getting a home loan when you are self employed has historically been one of the more complex areas of mortgage broking. In years gone by, lenders placed strict restrictions on how self employed income could be verified — and many of those rules were frankly outdated.
The good news is that the lending landscape has changed significantly. Today there are multiple ways a self employed borrower can verify their income for home loan purposes — and at The Broker Society, we work with self employed clients across Noosa, Noosaville, Tewantin, the Sunshine Coast, Gold Coast, Brisbane and Yeppoon every day to find a suitable lending pathway.
Here is a breakdown of the main options currently available:
Full Documentation In many cases a full doc application — using your complete tax returns and financial statements — remains the most suitable pathway. This is always assessed on a case by case basis taking into account your overall circumstances, the options available in the lending market, and our obligations under Best Interest Duty.
Fast Track Lending Some lenders will consider applications where servicing can be evidenced through wage or trust income alone, verified against your individual Notice of Assessment. Certain lenders will use an average across two years of assessments.
Alternate Documentation Where your business has experienced improved trading conditions, some lenders will accept Business Activity Statements (BAS) as a way of evidencing more recent income — rather than waiting for your next lodged tax returns to be completed. This can be a suitable option for borrowers whose financials are in a period of positive change.
Director Wage Policy Some lenders will accept wage income only, provided you have been paying yourself a consistent wage from your business for a minimum period of six months.
One Year Self Employed In some circumstances, certain lenders will now consider applications based on one year of income financials rather than the traditional two year requirement.
As you can see, there are now more pathways available for self employed borrowers than ever before. The right option depends entirely on your individual circumstances — which is why speaking with an experienced broker makes all the difference.
If you are self employed and exploring your home loan options across the Sunshine Coast, Gold Coast, Brisbane or regional Queensland, the team at The Broker Society would love to have a conversation.
Call us on 0418 828 766 or book a consultation at www.thebrokersociety.com.au