What are the home loan options for self-employed Australians?
If you're a self-employed Australian looking to secure a home loan, you be forgiven for feeling slightly outside the normal range of traditional mortgage packages. One of the complications is often the lack of documents needed to successfully apply for a regular home loan.
Luckily, there are options available to help you achieve your property goals. These come in the form of a low doc home loan, which could be your ticket to securing your dream home.
What is a low doc home loan?
Low doc home loans – which stand for low documentation – are mortgages that can be applied for and approved without the usual paperwork. While with normal home loans it's often required to provide a wide range of statements and documents to help prove you're reliability as a borrower, low doc home loans require significantly less.
This is because self-employed individuals often don't have all the required statements necessary for a regular home loan application.
How do I apply for a low doc home loan?
As a self-employed individual, you need to prove that you have a regular income in order to assure the lender of your ability to make regular repayments, on time and in full.
Therefore, lenders ask to see your Australian Business Number – which usually has to be older than 12 months – as well as evidence of regular income and a degree of savings. These pieces of evidence will help you to secure a home loan, while any other statements will provide supplementary evidence.