Our brokers work hard at understanding our client’s unique circumstances and helping them overcome common home loan challenges. Whether you’re a first home buyer or an experienced investor, we’ll help you find the best home loan for your situation. Whether you’re self-employed and have trouble proving your income or you’re a contractor or casual worker, we offer solutions for all types of clients’ income sources.
Are you self-employed and looking for a home loan in Melbourne? It can be tricky to find a loan that suits your needs, but don’t worry – we’re here to help. Our brokers work with a wide range of lenders who offer some of the best emergency home loans for self employed borrowers. If you’re looking for a home loan for self employed individuals finance option, we can help you find the right loan product to suit your needs. Our brokers can help you go through self employed home loans requirements, check your eligibility and submit a loan application on your behalf. Contact us today.
What Are Self Employed Home Loans?
How Much Can You Borrow?
When Can I Qualify For A Loan
Self Employed Home Loans Requirements in Melbourne
Two Years Tax Returns
How To Apply For A Home Loan For Self-Employed Borrowers
- Compare your options: Home loan products come in all shapes and sizes, so it pays to compare your options before you apply. Calculate your budget and consider your current lifestyle and expenses. Make sure you only apply for a loan you can afford.
- Get your paperwork in order: Home loan applications will require supporting documentation, so make sure you have everything you need beforehand. This includes tax returns, financial statements, and asset information.
- Work with a broker: A qualified mortgage broker can help you navigate the home loan process and find the best loan for your unique situation. They can help you compare rates and check the fees, features, and other benefits of different home loans.
How Do Lenders Calculate Your Income?
From there, they will make some adjustments. For instance, they may add back in any depreciation expenses that you claimed on your taxes. They may also make an allowance for any one-time expenses, such as the purchase of new equipment. The final step is to calculate an average income for the last 2 years. This will be used as your qualifying income for the loan.
It’s important to remember that each lender has their own guidelines for self-employed borrowers. So, it’s a good idea to shop around and compare offers before you decide on a loan.
What Is “Add Back”?
Add back is an accounting method used to calculate your taxable income. It allows you to include certain expenses that are not deductible for tax purposes, but which may be relevant when assessing your ability to repay a loan.
As a self employed individual, an add back is relevant because your taxable income may not necessarily reflect your actual income. Furthermore, if you’re newly self employed, there may be some expenses in your first year or two that won’t be ongoing.
The most common expenses that can be added back are:
Choosing The Best Home Loans For Self Employment in Melbourne
Got Any Questions?
Frequently Asked Questions
Can I Get A Home Loan As Self-Employed?
When applying for a home loan as a self-employed borrower, you will need to provide:
- Tax returns for the last two years
- Financial statements for the last two years
- A list of your business assets and liabilities
What Are The Requirements Of Self-Employed Home Loans?
Asset: You need to have assets to be eligible for a self employed home loan.
Liability: You need to have a low liability to be eligible for a self employed home loan. This can be done by providing proof of income and expenses.
Business registration: If you are self employed, you will need to provide evidence of your business registration.