What Loans Can I Get if I Am Self-employed?
If you are self-employed, Mortgage House understands how important cash flow is to you. We also know how hard it can sometimes be to get mortgages. Self-employed business owners optimise their businesses for growth and for tax efficiency, not for the ease of applying for mortgages. That is where we can help. Our experience can help you get into your own home, by offering a range of mortgages suitable for you. Our award-winning program can help you with variable or fixed rate mortgages, which are two of the most common mortgages. A variable rate loan can provide you with flexibility and allow you to take advantage of low official interest rates. A fixed rate gives you the stability of knowing how much you will pay each month. The two other types of mortgages that can suit self-employed people are low-doc or interest-only loans. An interest only loan can help if you are getting into property investment or you require a loan with low expenses.
How can I manage my super contributions?
Super contributions can be easy to overlook when you are self-employed. If you work for someone else, they are required to contribute to your superannuation each week. But what happens if you are self-employed? The short answer is it is up to you to provide for your retirement. A lot of people in your position will simply stop getting paid when they stop working, which can make retirement scary or, even worse, something you never want to do. If you have a job that requires physical labour, that can make things even scarier. You can plan for retirement by making super contributions to a fund.
Can you help with superannuation?
At Mortgage House we are more than just about mortgages. We can also help you when it comes to superannuation, especially if you are self-employed. We work with private providers to offer you a large range of services and options. These can include customising your personal and employer super funds to benefit your situation and your stage of life. We can refer you to experts on do-it-yourself superannuation, which is an option that can benefit those who are self-employed, as can offering you access to small APRA funds. Our experience can help you make the most of superannuation tax concessions, and how to plan to maximise your retirement savings. A lot of people don’t realise that you can access parts of your superannuation in the lead up to your retirement. If you are self-employed and looking to sell your business before you retire, that can come in very handy.
How can self-employed people get mortgages?
Self-employed people can face more hurdles than other Australians when applying for mortgages. Gaining pre-approval can therefore be difficult, and that’s where we come in. We can walk you through the pre-approval process, including which documents you will need to give you the best chance at pre-approval. We can help you create cash flow statements that show what you need to show, as well as other documents, such as your personal and business tax returns for the past few years and financial statements from your business over the same time period. When it comes to mortgages, you will also need to prove you can make a deposit or down payment of 20% on most mortgages.
What about sole trader loans?
If you are a sole trader, looking for mortgages can sometimes be difficult. As the only one responsible for all aspects of your business, lenders can often make things hard. At Mortgage House, we offer what’s called Low Doc mortgages. Low Doc is short for low levels of documentation, which can help if you are unable to provide all the financial documents usually needed to be approved for mortgages, such as full financial statements or evidence of income. Low Doc loans are often a flexible solution, however you will still need a good credit history. Given the increase level of risk to the lender, interest rates and repayments are often higher for Low Doc loans. As there is less paperwork involved, approvals for Low Doc loans are often quicker and you can get interest rate reductions after a while if you have met your loan repayments. However, you may also have to pay mortgage insurance with a Low Doc loan, which will add to the cost.