20 Jan 2022

Can I Get a Mortgage with 1 Year of Self-Employment?


One question on a lot of self-employed people’s minds is can I get a mortgage with only one year or minimal experience? While it is a lot harder to get a borrower or Bank to trust you enough to borrow money when you don’t have enough paperwork for proof of self-employment, there are exceptions. 

So what exactly happens when you don’t have more than one year of experience with self-employment?

Higher Rates

If you don’t have enough experience or proof of income, you can still acquire a loan for a house, but your interest rate may be higher. Banks and lender companies do this so they can make sure that they have enough trust to lend money. 

Lower borrowing amount

Some banks will offer you a lower borrowing amount compared to the value of the home. For instance, if the house you are looking at is worth 150000 AUD, then the Bank may only offer 70-80% of this value. This means that the rest will have to be from either yourself or another lender company. This can get tricky, however. 

What paperwork should you provide when you only have one year of self-employment? 

Any paperwork that seems relevant you should give to your bank or lending companies. They want to know they can trust you. Even if you only have one year’s worth of taxes, this is enough to capture their attention. 

You can also provide bank statements if you have a surplus of savings. Depending on the Bank, they may recommend or require a letter of recommendation.

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