Home Loans For Self Employed Borrowers
Guide to Secure a Home Loan for Self Employed Borrowers
If you are self-employed you can often find it hard to apply for financial products such as credit cards or overdrafts as lenders tend to see you as more of a risk. While you know that there is just as much or risk that someone who is not self-employed could be fired, and that in fact as a small-business owner you are better placed to recover if you lose a contract or client, is often lost on many lenders however there are ways you can apply for a home loan and a secure a loan which meets your unique needs as a self employed homeowner.
Featured Self Employed Home Loan
Apply for a State Custodians Mortgage Company Lo Doc Loan and secure a low interest rate and borrow up to 80% of the property value.
- Interest Rate of 6.97%
- Comparison Rate of 6.88%
- Application Fee of $0
- Maximum LVR With LMI: 80%
- Minimum Borrowing: $0
- Maximum Borrowing: $1,000,000
Featured Low Doc Home Loans for Self Employed Borrowers
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 State Custodians Mortgage Company Lo Doc Loan |
Flexible options matched by a great interest rate. | 6.97% | 6.88% | $0 / $0 | 80% | $0 / $1,000,000 |
 
|
 Aussie Optimizer Fixed Rate Home Loan – 3 Year Fixed Rate |
A flexible home loan offer with one of the lowest interest rates in the market. | 5.99% | 6.80% | $500 / $0 | 90% | $100,000 / $2,000,000 |
|
 Homeloans ProSmart Lo Doc Line of Credit Home Loan |
Borrow up to 90% of the property value with this low doc home loan. | 8.04% | 8.12% | $199 / $0 | 60% | $50,000 / $1,500,000 |
|
 ANZ Lo Doc Loan |
Borrow up to 60% of the property value with this low doc loan. | 6.45% | 6.40% | $ 0 / $ 0 | 60% | $20,000 / $0 |
|
 St.George Low Doc Home Loan <$500k |
Interest only repayment option and redraw facility offered. | 7.19% | 7.38% | $850 / $12 | 80% | $50,000 / $1,500,000 |
|
How Can A Low Doc Loan Suit A Self-Employed Borrower?
A low doc loan caters specifically to your needs if you are self-employed because as the name suggests you don’t need to supply very much documentation to be successful. You can benefit from a low doc loan if you are self-employed because:
- You can self verify your income. If the loan to value ratio on the amount you want to borrow is less than 60% you don’t need to provide a BAS to your lender. You can instead simply sign a document during your application verifying the amount of income you earn being self-employed, and this is all your lender requires to verify your income and eligibility for the loan.
- You are forced to borrow less. If you need to borrow less to get your LVR below 60%, or you are simply adhering to the typical a percent deposit required of a low doc loan, then you are providing more of a deposit and borrowing less, meaning your repayments will be more affordable because of your lower loan amount and you alone will be easier to manage in those times when a client is late paying, or you have a run of bills.
How Can A Line Of Credit On A Home Loan Suit A Self-Employed Borrower?
A line of credit equity which can be added to many home loans and you may even have a line of credit option on your current home loan without realising. A line of credit home loan may suit you if you are self-employed because:
- You can overpay or underpay for your line of credit. A line of credit gives you access to the equity in your home, which you can use to pay bills or invest in your business, or in any way you choose you do not need to repay a line of credit until you reached the limit of credit available as the repayments can be drawn from the credit remaining. This means you can access funds when you need them, you don’t have to worry about repaying your line of credit if you’re having a tight month, and you can then deposit lump sums of funds onto your line of credit to repay your loan when you can afford it.
- Home loans for self-employed Australians need to understand you don’t always have consistent income. Cash flow is an important issue for many self-employed Australians, so while you may not always have enough money to pay your bills in one month, in the next month you might be able to afford two months of expenses. A line of credit feature on your home loan can benefit you because you are likely to be asset rich but without access to a consistent income and you can use your line of credit to cover those tight months and then paid off when you can afford it.
Small businesses make up an important part of the Australian business sector, and if you are self-employed you do not have to feel as though you are shut out from the financial options open to those who draw a regular salary. Instead more and more Australian lenders are making room in the eligibility criteria and home loan products for self-employed borrowers.
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