Self Employed 

Self-employed people and their mortgage applications can seem more challenging than those employed by a company, but this does not mean they can’t obtain a loan.

Monteus brokers can assist with paperwork, understanding your goals, and recommending products and lenders* that suit your needs. 

Our job at Monteus is to help you sort out the paperwork and find you the right home loan – even if you’re self-employed.

Self-employed people are assessed differently

When you apply for a home loan as a self-employed person, you will need to show evidence of your business’ financial status. The reality is that banks view self-employed and business owners’ applications differently. 

If you have a job with an employer, a lender will only require your personal financial position to make a lending decision. When you work for yourself, your lender will also consider your business’ financial position. If you are self-employed, banks and lenders may consider your income as ‘unpredictable’ and therefore consider you at much higher risk of missing repayments.

Before applying for a home loan, self-employed individuals may also need to prepare some more paperwork, such as:

• last two years of company tax returns
• last two years of other financial statements (e.g. profit and loss statements)
• last two years of personal tax returns
• date of ABN and GST registration.

The accuracy of your records is also paramount so you and your lender can make the most informed decisions about your loan.The most important thing is to show that income has been consistent, that your business has grown, and that earnings have increased over the long term. 

You have a better chance of being approved for a home loan when you can demonstrate that you are a safe investment for your lender. You only have to go through a few more steps during your application when you are self-employed.

Preparation for home loan applications

Before applying for a home loan, everyone should prepare the following paperwork;

• employment details
• savings history
• outstanding loans (e.g. car or personal loans, prior home loans, credit cards, etc.)
• existing assets (e.g. real estate, motor vehicles, investments, superannuation).