Austral home loan guide if you're self-employed
This guide includes
- Some great general advice
- Our recommendations from the Austral suite of home loans for self-employed borrowers
- What to look for in a home loan
Firstly... you should be aware that if you are self-employed and not able to verify your income, your loan application will be assessed on a “LoDoc” basis as being higher risk and a higher rate of interest will apply.
If you want to secure a standard interest rate then you should collate the necessary financial information for your accountant, lodge your tax returns and apply for a “Full Doc” loan where your income is fully verified with tax returns and up-to-date financials.
Where tax returns and financials are available lenders will assess your servicing capacity by taking into account your net profit or loss and certain add-backs such as depreciation, director’s fees/salaries, motor vehicle and one-off expenses. When determining the actual surplus amount you have available from your business to service your new loan some lenders will consider 100% of add-backs while others may only take a percentage.
Lenders have differing criteria as to the documentation required when assessing LoDoc Loans. Most lenders require business trading statements and BAS statements. Others simply require a statement as to affordability and request that your accountant also declares that you can afford the repayments.
Our recommendations from the Austral suite of home loans for self-employed borrowers
Austral mortgage recommends self employed borrowers choose from the following loans
What to Look for in a home loan
Checking out and comparing the many loans available in the market can be a time-consuming task when you are self-employed and unsure of what sort of features you need in a home loan.
Whether you are purchasing an established or new home, a house and land package or simply vacant land on which you intend building over the next 12 months, you should be looking for features in a home loan that give you flexibility and savings wherever possible.
Austral products for the self-employed have some unique features which are not generally available through the major banks or other lenders.
Our standard home home loan allows you to make extra repayments, redraw extra amounts you have paid over and above your minimum repayments and fix your interest rate at any time.
With the Austral 100% offset home loan you can choose a variable or fixed rate and have the option of re-paying up to $20,000 p.a. without any breakcost penalty.
Our Lo Doc home loans offer competitive rates, no monthly fees and are available in fixed or variable rates.