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Loans for Self Employed

Running your own profitable business is difficult enough without the hassles of applying for a home loan.  If you are self-employed, you would already know that providing the complete and up-to-date financials which will satisfy lender assessment criteria can be difficult. This is where APO Finance can help.

Types of Loans for Self-Employed

Fortunately, with the increasing number of lenders and home loan products available in the market today, self-employed people now have many more home loans and finance options available.

Lenders have also recognised that many self-employed people are the most reliable at repaying their debts as they are generally more self sufficient and pay closer attention to managing their money.

For those who can verify their income:

Self-employed people who are able to provide documentation which proves debt repayments, savings history, regular income and profit over a set period of time, can look forward to getting the same standard home loans as PAYG people.

For those who cannot verify their full income:

For a self-employed person who cannot provide full income verification, there are other loans now available to you, and often with similar conditions and rates to fully verified loans. There are lenders who cater specifically to the self-employed and offer a wide variety of competitive non standard loans such as:

• Low or No Document home loans (known as Low-Doc or No-Doc Loans)
• Non-conforming home loans.

Many lenders now offer standard and premium low-document products with the choice of fixed or variable interest rates.  This means that self-employed people can choose between a basic loan with a low interest rate, a loan with more transactional features and a higher rate of interest or a line-of-credit loan with all the bells and whistles.   And while you may typically expect to pay a higher interest rate on these loans, many lenders are now offering these loans at the same rate as standard loans.

You would typically (but not always) expect to pay a higher interest rate for these loans, but the good news is, that there are some lenders who will revert to lower rates if you make consistent 'on time' repayments. Some lenders will even offer low-documentation loans at the same rate as standard variable loans.

Pros & Cons

Due to the streamlined application process and less documentation to process and gather, obtaining a Low-Doc loan is generally faster and easier.

However, there may be limits on the amount you can borrow (ranges from 60 to 80 per cent of the value of the property). You may also have to pay lender’s mortgage insurance, adding to the cost of the loan.

There are many ways the expert team at APO Finance can help your lending requirements. Call us anytime on 07 3387 2200, or click here to make an appointment.