16 May 2022

Self-Employed Home Loan: What Do I Need to Know?

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Australian homebuyers and the lending market changed in the 2000s. Lenders realised that homebuyers had more trouble qualifying for conventional mortgages. Plus, homebuyers shied away from variable-rate options. Therefore, lenders such as Mortgage House introduced innovative products including the self-employed home loan.

The self-employed mortgage takes into account that small business owners, independent contractors, and gig workers cannot provide full financial documentation such as payslips. Instead, they will submit alternative documentation such as letters from their accountants and financial business statements. Therefore, another name for the financing option is a low doc loan.

Three low doc loans that Mortgage House offers include:

  • Advantage 1 Year Fixed
  • Advantage 3 Years Fixed
  • Investment Special Advantage 3 Years Fixed 

The application process is shorter for the low doc loan than the conventional mortgage. However, applicants will organize the paperwork and finances like other homebuyers. For example, you’ll turn in personal and bank statements. You’ll also provide financial statements. The alternative financial documentation helps lenders establish that you can repay the debt in full and on time. 

Financial professionals encourage renters to become homeowners. Low doc loans offer a homeownership pathway for the self-employed. Our Mortgage House lending specialists can discuss your options with you including potential home loan interest rates. To improve loan terms, lenders encourage self-employed home buyers to place a 20% deposit. Loan-to-value ratios vary between 60% to 90%. 

Mortgage House Self-Employed Home Loan Conclusion

To apply for a Mortgage House self-employed home loan, apply online or contact our lending specialists today. Our team remains ready to help.

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