There are options
Self-employed borrowers often come up against the challenge of not being able to present a raft of financials and tax returns to back up their loan applications. But this need not stop you refinancing or buying your dream home.
This means that, rather than the usual documentation, you prove your ability to service a loan using BAS, business bank statements, declarations from your accountant or a combination.
Of course, as with any mortgage application, you must still prove that your income outstrips your spending and you can service the loan. Getting this right is more than presenting a lender with a few quick sums on the back of a coaster; but with a little help from your broker it is possible.
Reduce debt: having credit cards with high reduces your borrowing capacity as do personal and vehicle loans. limits (Lenders use limit not current balances when assessing)
Low-doc loans do differ from standard loans in a few ways, apart from the application process. The Loan amount to Value of the property (LVR) is lower at less than 85%
In cases where the loan amount is for more than 60 per cent of the property’s value, some lenders also require self-employed borrowers to pay for lenders’ mortgage insurance, which protects the lender not you.
Lender policies around Low-Doc change regularly so if you would like to find out more contact Mark Grange – Liberty Financial Adviser
RSS Feed