Self Employed Home Loan - www.bhome.com.au - The Business & Home Loan Centre

Home Loans for the Self Employed

When it comes to arranging a self employed loan on a home or investment property, there are the two main choices .

Full Documentation Loans

Standard variable rate or fixed rate loans, Interest Only loans or Equity-Line of Credit loans.

These loans are available to all self employed borrowers who are able to provide full financial statements and income tax returns for the previous two years as proof of their ability to service a loan.

Most lenders will let you borrow up to 95% per cent of the purchase price or valuation of a property. Lenders mortgage insurance may however be required if you borrow more than 80 per cent of the value.

Lo- Documentation Loans

Managing your own business is difficult enough without having to deal with the problems that arise when applying for a home or investment loan .
If you are self-employed, you may not have access to a traditional home loan due to a lack of the paperwork that will enable a lender to verify your income .

The alternative is a no documentation or lo-document home loan (often called low doc loans ). Low doc home loans are specifically designed for self-employed people and other non-conforming borrowers.

To qualify for a lo-document loan, some lenders may require you to self-certify your income and demonstrate a clean credit history.

You may still qualify for a loan where there are previous credit defaults due to disputes, but a higher than normal interest rate may initially apply.

With less documentation and a streamlined application process, obtaining a Self Employed Home Loan is faster than applying for a standard home loan and, while interest rates may be higher than a standard loan, you may be able to transfer to a full-doc loan with a lower interest rate, at no cost, once you can provide the traditional forms of income verification .

Products

Many lenders offer standard and premium lo-document products with the choice of fixed or variable interest rates or a line-of-credit loan .

At bhome.com.au, we would look to provide you with an excellent choice of low doc products to ensure that your costs are kept to a minimum.

Apply now and let us handle the entire process from start to finish on your behalf.