If you’ve tried to buy a home while self-employed or running your own business, you probably know just how complicated a self-employed mortgage Australia can be. Lenders have stricter requirements when you work for yourself, and understanding these can be tricky. Which is why Darren Walters, CEO and Founder of No1 Property Guide, has put together this article covering your questions and concerns about self-employed mortgages in Australia. 

With more than 20 years of experience in property, finance and lending policies, Darren understands what is involved in getting a home loan when you’re self-employed. Using his no or low deposit new home system, Darren has already helped thousands of renters become homeowners. Including many self-employed renters and business owners. 

To find out your factual new home options, and how No1 Property Guide could help you escape the rental nightmare once and for all, simply fill in our pre-qualification today.

What is a Self-Employed Mortgage Australia?

A self-employed mortgage is essentially the same as a regular home loan, except with stricter criteria and conditions. Banks and lenders consider self-employed applicants as a higher risk than traditional wage/PAYG borrowers. Because of this, they implement slightly different criteria and rules to lower the risk for themselves. 

The main change for most lenders is needing 2 years’ worth of financials. This basically means you need to prove your income over the past 2 financial years. Rather than the last 3-6 months. 

In some cases, you may also need to provide additional paperwork to show the profitability of your company. Especially if you don’t pay yourself a regular wage. On the other hand, if you pay yourself a regular wage consistently, you’ll probably have an easier time and get a quicker approval. 

If you’re not sure where to get started or if you qualify for a self-employed mortgage, don’t worry. Here at No1 Property Guide, our New Home Consultants are experts in helping renters become homeowners. Using Darren’s proven no or low deposit system, we can help you secure your new home. Even if you’re self-employed. 

Simply fill in our pre-qualification form and one of our New Home Consultants will be in touch to discuss how we can help you achieve your homeownership dreams. 

What Documents are Required for a Self-Employed Mortgage Australia?

As mentioned earlier, there aren’t a lot of differences between a self-employed mortgage and a regular home loan. Which means the documents and paperwork you need to provide are similar. 

The main difference is providing 2 years of financials. This is usually done using your last 2 income statements or an ATO notice of assessment. Other than this, you will also need to provide some other basic paperwork, like: 

• Bank statements 
• Identification 
• Proof of any other income or debts (like personal loans, credit cards) 

Here at No1 Property Guide, our first step is calculating your borrowing capacity. This allows our team to accurately advise all your factual options without affecting your credit history or submitting a formal application. 

Understanding your factual options is as simple as filling in our pre-qualification form and uploading your 2 most recent income statements. With this information, our New Home Consultants will be able to accurately assess your borrowing capacity and advise all your factual options. 

Once you know your borrowing capacity, you can make an informed decision about whether you want to stay renting or become a homeowner. 

Can I Get an Investment Property with a Self-Employed Mortgage Australia?

Absolutely! Self-employed mortgages are available for both owner-occupied and investment properties. Generally, lenders require more paperwork for an investment loan. Especially if you’re using equity or super. However, they’re still an option if you are self-employed and want to start building a portfolio.

At No1 Property Guide, the basic paperwork requirements for an investment loan are the same as a standard home loan. With just your 2 most recent income statements and some basic information, we can assess your situation and calculate your borrowing capacity. 

Of course, if you are looking to use equity we’ll also need some additional information about your existing property. How long you’ve owned it, current equity, how much is owing etc. This is so we can accurately advise your factual options. 

Can I Improve My Chances of Approval?

When you’re looking to finally escape the rental nightmare and become a homeowner, it makes sense that you’d want to increase your chances as much as possible. When using Darren’s proven new home system, we’re able to accurately assess your borrowing capacity and find factual new home options to suit.

But there are always ways you can increase your approval chances, including: 

• Reducing debts
• Increasing income
• Using equity
• Having a guarantor

It’s no surprise that reducing your debts and increasing your income is a surefire way to increase your approval chances. Having less of your regular income taken up by debts, or increasing the amount you have to spend, gives you more funds to pay your mortgage. And it is one of the biggest positive signs for lenders. 

Using equity is another way to help secure an approval, as you’re using another property to reduce the risk to the lender. Which is also why having a guarantor helps your chances as well! Having someone else act as a guarantor for a portion, or all, of your mortgage, will significantly increase your chances of approval. As long as the lenders consider them a good guarantor of course!

Get a Self-Employed Mortgage in Australia, Thanks to No1 Property Guide

Ready to discover your factual new home options and secure your new home with a self-employed mortgage Australia? Then simply fill in our quick pre-qualification form. Once we have some basic details, our New Home Consultants will be in touch to discuss your factual options and how Darren’s no or low deposit new home system can help you escape the rental cycle and finally become a homeowner.