If you are a self employed person, and finding it difficult to get a home loan because your income on the financial statement does not look to good, or you have not done the tax return for a number of years, then please read on, as we will have a solution for self employed people to get the home loan with ease.
Home loan for self employed people
What self employed or small business really need to know is NO DOC or LOW DOC home loan products, They were quite common previously, however, in recent time, due to the tightening of the credit policies from the Bank, they are becoming lesser common.
In principle, Low Doc and No Doc home loans are designed to assist people who do not qualify for a standard home loan to buy a property due to the lack of or incomplete income evidence .
Generally to qualify for a standard home loan you would require an income statement, this could pose an issue to self employed persons and small business owners.
The numbers on your sales maybe skyrocketing but at the end of the day the net sales is what matters. If you make 2 million in sales and only net 20,000 you will only receive a borrowing capacity of 80,000 if you are lucky.
With Sydney’s property market rising day by day, the median house price in Sydney now is now well above 1 Million. An $80,000 borrowing capacity is not going to get you anywhere. You need to borrow at least $800,000 if not more to settle the property, and you might have to pocket out additional $40,762 along with legal fee, and other disbursement. Hence one would be looking at pocketing out $245,000 to purchase a $1million property. Then the maximum borrowing would be a $1million.
Everyone wants to get in on the Sydney property market, as once you have that investment you are well set for life.
At EndureGo we provide low doc or no doc home loans. All you need is an ABN which has been valid for a year and a declaration form. You DO NOT NEED to provide pay slips, tax returns or financial statements, as the bank will just need to rely on self-declaration. However, normally the maximum borrowing is $1million, with a maximum LVR or loan to valuation ratio of 70%. That means, if you are buying a $2million dollar property, then the maximum borrowing would be $1million.
We at EndureGo have helped many self employed clients get their dream home with no hassle. We are home loan and tax specialists located in Ashfield Sydney and Adelaide. Start the journey with us to reduce your stress of getting the right loan for you.
Call the home loan specialist for self employed people now on 0410-829-900 to make an appointment.
