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Self-employed and want a home loan?

If you’re self-employed or you own your own business, you’ll know all about the challenges of admin – keeping your accounts, finances and income flow all on track.

It’s not easy. The last thing you need is a ‘no’ on your home loan application because of the paperwork.

 

But here’s some good news. There are alternatives.

Sort out the paperwork you do have

When mortgage lenders are looking at a home loan application, they are usually looking for a regular level of income that shows them you’re able to make the proposed repayments. Start by showing paperwork that tells them you’ve been self-employed for an ongoing amount of time and that you do earn a regular amount each month. Being able to demonstrate these things to them will help build your case.

 

Given that it is sometimes a bit of a challenge to provide all the paperwork you need to document your income, some lenders have worked out a different process for it – it’s called alternative documentation (Alt Doc for short). It is specially designed to meet the needs of self-employed or small business owners who can’t provide the income documentation required by traditional lenders and mortgage insurers but can still provide valid information, just with different types of paperwork.

 

Some of the things they look for are:

  • Has your business been ABN registered for at least 6 months?
  • Has your business been GST registered for at least 6 months?
  • Business Activity Statements (BAS), and/or
  • Business Bank Account Statements, and/or
  • An Accountants Letter.