Home Loan Options for the Self Employed – Low Doc Loans
Low Doc Loans - Why you need a Broker
Being self-employed has many perks, but securing loans often isn’t one of them.
Regardless of the success and standing of your business, if you are self-employed, then there is a high chance that your home loan application will not be approved through the traditional mortgaging route.
But don’t be disheartened yet. Read on to know all the options available for you:-
The current lending landscape is very different from how it used to be decades ago. That’s why it is very important to talk to a broker before submitting a loan application.
While most lenders tend to offer loans only through conventional routes, which involves a lot of paperwork that a self-employed person may not have, your broker can direct you to a specialist lender who offers self-employed home loans.
Traditional lenders always ask for documents that prove a steady source of income, like payslips or employments contracts, loans specifically for self-employed people do not require these. Low doc loans are one such type, which can be obtained through submitting business activity statements or financial declarations signed by your accountant.
Make Your Broker Your Friend
Many times self-employed borrowers will not be upfront about their credit history because they may have defaulted on a few payments in the past. But this can actually hamper your chances of securing a loan instead of boosting them. (This is particularly true of low doc loans as these lenders already perceive you as a higher risk borrower.)
This is because everything will come to light as soon as your lender has a look at your credit report. Therefore, be honest with your broker even if you feel certain aspects of your credit history is not up to the mark. This will not only enable them to advise you more accurately about your options, but will also help them to direct you to the best lender based on your financial position.
If you are self-employed and lack the current financial documents required for a traditional home loan, contact one of our lending specialists today to discuss sourcing low doc loans as an alternative to your lending needs.