CBA Loan Options for the Self Employed
To become self employed and owner of your own business is a lifetime achievement in itself. Many dream about one day being their own boss but few go ahead and achieve such a distinction but for those who have successfully climbed that hurdle, there has always remained a further obstacle to get over. That being the ability to get a home loan in order to buy your own home.
This anomaly has come about because lenders have traditionally wanted documentation that many self employed found it hard to comply with. Up to date taxation returns are one example as is proof of regular earnings another. Many self employed have to wait for payments for the work they have carried out to come in which often makes their actual income earnings irregular.
Commonwealth Bank home loans have recognised this failing in the banking system to properly service hard working people in this category by offering low documentation home loans, better known as Lo Doc home loans. These loans have been specifically designed to cater to the needs of self employed and small business owners whose regular cash flow can be difficult to forecast. Therefore people in this sector can now apply for a home loan like everybody else in the community but are not required to produce all the taxation returns or financial statements that are generally required to be produced by others.
Commonwealth Bank home loans have designed a Low Doc service to be applied to a variety of home and investment loans that are also available to the general home loan applicant, except that in the case of the eligible self employed, documentation requirements have been relaxed. These loans that have been made available include the following:
- Low Doc Economiser. This home loan known for the self employed as the Low Doc Economiser, gives the self employed home buyer a low base variable interest rate loan with an additional feature that allows for any amount of additional payments to be made when extra money is available. It also come with a redraw facility.
- Low Doc Standard Variable Rate Home Loan. This Low Doc loan gives all the features as the normal Standard Variable Rate as well as a redraw feature. An added feature with this home loan allows for flexible repayments to be arranged which includes the right to make extra repayments when money is available. It also allows for a repayment holiday if required at any stage as well as access to a 100 percent offset transaction savings account through a linkage arrangement with the Mortgage Interest Saver Account (MISA).
- Low Doc Fixed Rate Home Loan. The self employed equivalent of the fixed interest rate home loan, the Low Doc Fixed Rate Home Loan allows you to choose either a 1 to 5, 7, 10 or 15 year fixed interest rate term. This loan is important to a self employed or business owner who is looking for repayment certainty for budgetary or other reasons as a fixed interest rate home loan is not subjected to interest rate fluctuations as are variable interest rate loans.
- Low Doc Viridian line of Credit Home Loan. Commonwealth Bank home loans offer the Viridian Line of Credit home loan to self employed home loan applicants the same as it does to other customers with all its features intact. It is an all-in-one transaction account that gives savings on future borrowings as well as everyday banking needs along with all insurance and investment services. An added benefit for the self employed is the ability to draw down whenever you need to do so, as long as you remain within credit limits, this limit will be determined by your business cash flow. With a Viridian Line of Credit home loan you will be able to access your equity whenever you find you need it, a particularly useful tool for self employed investors.
Self employed and business owners are also eligible to apply for the Commonwealth Bank home loans ‘Wealth Package’ if you haven’t borrowed more than 60 percent of your property value. With a ‘Wealth Package’ you can save 0.70 percent on the Low Doc Standard Variable as well as the Viridian Line of Credit home loans and 0.15 percent on the Low doc Fixed rate loan.
To be eligible for Low Doc Commonwealth Bank home loans you must be able to comply with the following requirements:
- Have been employed in the same industry for at least 12 months and able to provide an ABN or Certificate of Corporation.
- The maximum you can borrow is 80 percent LVR.
- If you borrow more than 60 percent you will need to take out mortgage Insurance and provide Business Activity Statements verified by the Taxation Office for the previous 12 month period.
- Confirmation that your earnings have been registered for the GST if over $75,000 pa.
- If not registered for GST you may have to provide the bank with the previous six months of your business bank statements or personal transaction account statements.
Related posts:
- Commonwealth Bank Viridian Line of Credit
- Home Loans for the Self Employed
- Your Home Loan Eligibility
- Home Loan Tips For The Self Employed
- St.George Home Loans for Self-Employed and Small Business Owners
- NAB Solutions for Self-Employed (‘Low Doc’)
- Home Loans For Self Employed Borrowers
- Can Self Employed Workers Get A Home Loan?
- Commonwealth Bank Interest In Advance Fixed Rate Investment Home Loan
- Commonwealth Bank Wealth Package Loan ($500,000 plus)
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