Sponsored How to get a home loan when you’re self-employed
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How to get a home loan when you’re self-employed

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The nature of employment means cash flow is not consistent and the books can look lacklustre during the lean times.

So it’s no wonder self-employed people assume they face tougher standards and fewer chances of success in securing a loan than wage and salary earners.

But being self-employed doesn’t mean you will be turned away by the banks.

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After all, statistics show more Australians want to determine their own working hours and conditions. Australian Bureau of Statistics data reveals there are 2.1 million self-employed Australians. And a survey by Elance-oDesk found 3.7 million Australians freelance on either a full-time or part-time basis, or even moonlighting around their day job.

The good news for these workers is that most lenders understand the nature of irregular cash flow. While each case is considered on its own merits, applications for self-employed workers are no less successful than regular loan applications.

The golden rule is to do your homework. Be familiar with the numbers and prepared to answer questions about your business plan, the future of your business and how you plan to make repayments.

Self-employed workers must prepare their financial statements for the past two years, including:

• Personal and company tax returns
• Profit and loss statements
• Balance sheets
• ATO assessments and tax portals

Some banks will steer self-employed applicants towards low-doc loans, which do not require tax returns or financial documents. Instead, borrowers are required to sign a declaration about their financials. However, low-doc loans may involve paying Lenders Mortgage Insurance (LMI) on top of your loan at settlement.

At ME, self-employed borrowers are entitled to access the same types of loans as other borrowers. This includes ME’s Flexible Home Loan, which gives homeowners the choice between fixed, variable or split loans.

The Flexible home loan has no application or ongoing account-keeping fees. Homeowners can choose to make repayments weekly, fortnightly or monthly.

To find out more details about ME home loans, check out the online calculators. You can also compare the benefits and features of ME home loan products to find the right one for you.


This content was sponsored by ME Bank. Comparison Rate based on a loan of $150,000 for a term of 25 years. This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Terms, conditions, fees and charges apply. Applications are subject to credit approval. For more information, go to mebank.com.au or click the logo below:

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