Welcome to Our Agency!
Self-Employed Home Loans In NSW
Getting a mortgage when self-employed and owning your own home is a significant milestone in life. However, for self-employed individuals in NSW, achieving that dream can come with some additional considerations – especially given the unpredictable nature of self-employed earnings.
The good news? Loan Nerds specialises in securing home loans for self-employed borrowers! We understand the unique challenges you face when applying for a home loan and are wholeheartedly dedicated to guiding you through the process as smoothly as possible.
Have you been feeling overwhelmed and that perhaps a home loan might be off the cards for you? Don’t give up. Here’s how we can help…
The Process of Applying for Self-employed Home Loans in Australia
When you use us as your trusted home loan broker, the process will be as simple as it possibly can. Starting with the initial consultation, where we assess your eligibility and give you an understanding of what to expect using our mortgage repayment calculator, all the way to the final settlement, you will be in the capable and trusted hands of our highly experienced team of professional brokers, providing you with some of the best guidance you are likely to find.
Check your borrowing power
Curious how much home you can afford? Our quick and easy calculator helps you estimate your borrowing power in minutes.
Get online pre-approval
Save time and gain an advantage in today’s competitive market. Get pre-approved for your home loan in minutes and be rea dy to make offers with confidence.
Talk to a mortgage expert
Our experienced mortgage brokers can guide you through the entire process, answer your questions, and help you find the best loan option for your unique situation.
What is a Self-Employed Home Loan?
A self-employed home loan is a mortgage designed specifically for borrowers who generate their income through self-employment, such as sole traders, contractors, freelancers, and business owners.
While the application process might differ slightly from traditional employee loans, securing a self-employed home loan allows you to leverage your hard work and financial independence to achieve your property goals.
At Loan Nerds, we are well-versed in helping our clients get on the property ladder and will gladly help you navigate the self-employed home loan process.
Who is Eligible?
So, how is eligible to apply for a self-employed home loan in NSW? Generally speaking, to qualify for a self-employed home loan, you’ll need to demonstrate your competency in financial management, among other things. These self-employed mortgage requirements include:
- A minimum trading history: This timeframe can vary depending on the lender, but typically ranges from 1 to 2 years. If you have been self-employed for less than 6-months, you may struggle.
- Healthy and consistent income: Lenders assess your financial stability based on your tax returns and business activity statements (BAS).
- Good credit score: Maintaining a healthy credit history demonstrates responsible financial management – which is something lenders take very seriously.
- Genuine savings: Being able to place a sizable deposit demonstrates your commitment towards the purchase and your financial responsibility.
Frequently Asked Questions (FAQs) on Self-Employed Home Loans
The minimum trading history required varies from lender to lender, however, it generally falls within the 1 to 2-year range.
But try not to stress too much. Having less than 2-years of self-employment doesn’t necessarily disqualify you from getting a mortgage when self-employed. As part of our services, Loan Nerds can explore alternative options for borrowers with limited trading history, such as lenders who consider projected income or lenders with a focus on helping new businesses grow.
Lenders will typically look at your tax returns for the past 2 to 3-years to assess your average income. They may also consider your BAS statements to verify income consistency.
Tax returns and BAS statements are crucial for verifying your regular income.
Additionally, having strong financial records showcasing income and expenses will strengthen your application.
Some banks might overlook the unique income structures of self-employed individuals. They may not account for legitimate business expenses, leading to a lower income assessment.
Loan Nerds understand the complexities of self-employed finances and will ensure that your application is presented as accurately as possible.
Not necessarily. While lenders do indeed assess risk, a stable trading history, consistent income, and good financial management will demonstrate your reliability.
Loan Nerds work with lenders who specialise in self-employed mortgages and we understand how to present your financial situation effectively and in the best possible light.
Not only that, but the lenders we associate ourselves with trust our judgement, thus increasing the odds of you securing a self-employed home loan through us.
Lenders will analyse your tax returns to understand your income, expenses, and tax obligations.
As leading home loan brokers in Parramatta, Loan Nerds can help identify areas to optimize your application, such as maximising legitimate tax deductions to show a higher taxable income, etc.
An “add back” refers to legitimate business expenses that the Australian Taxation Office (ATO) allows you to deduct from your income before tax is calculated. These expenses can include things like vehicle costs, office supplies, and travel related to your business.
Loan Nerds can help you identify and utilise add-backs to ensure your income is accurately reflected for self-employed home loan and mortgage application purposes.
When you’re self-employed, understanding exactly how much you can borrow can be confusing. Fortunately, we have a few handy tools to help you figure it out:
Other useful resources include:
RBA Rate Tracker from the Reserve Bank of Australia (RBA)
Why Choose Loan Nerds?
At Loan Nerds, we are passionate about helping self-employed individuals achieve their homeownership dreams.
We understand the intricacies of self-employed finances and effortlessly navigate the lending landscape to find the best options for your unique situation. Here’s how we can help:
- Specialist knowledge: Our team has extensive experience securing home loans for self-employed borrowers. We also specialise in a wide variety of home loan types, including a variable rate home loan and a fixed rate home loan.
- Streamlined process: We handle the paperwork and liaise with lenders, thus saving you lots of time and unnecessary stress.
- Competitive rates: We access a wide network of lenders to secure the most competitive interest rates and loan terms for you.
- Clear communication: We will keep you well-informed throughout the process and are always available to answer your questions.
Apply for Your Home Loan Today with Loan Nerds!
Don’t let navigating the home loan process as a self-employed borrower hold you back from achieving your property goals. Simply contact Loan Nerds today for a free consultation – and we’ll take care of the rest.
Our Team Members
Take a look at our professional team members.
I am passionate about helping people reach their property goals. A Master's degree in Accounting, a CPA qualification, and extensive experience spanning over a decade within the finance industry have enabled me to offer clients a unique proposition of professionalism and excellence. I became a Mortgage Broker in 2014, after experiencing the benefits of using one for my own home purchase. Since then, I have assisted over 500 clients with their home loans. In 2023, we started a company, Loan Nerds, to leverage technology and provide a unique solution to customers that is highly competitive but personalized to their own circumstances.
Rajiv has a wealth of experience in the Financial Services industry. He has completed a Bachelor of Business Administration and MBA with a major in Finance and currently holds a Diploma and Certificate IV in Finance & Mortgage Broking. Rajiv started his Mortgage Broking career as a Credit Representative of Connective Group and held various positions both in Australia and overseas.
Nabila brings over more than 2 years of dedicated service to Loan Nerds as a mortgage broker. She leveraged her expertise as a mortgage broker associate and loan writer since 2019. Her educational background includes a Certificate IV and Diploma in Finance & Mortgage Broking, a Graduate Certificate in FinTech from UNSW, and an MBA from the University of Dhaka. Nabila brings a proven track record of success, having assisted over 200 clients in achieving their dream of homeownership.
Mandeep is a dedicated mortgage broker who prioritises his clients' needs above all else. He's known for his positive attitude, patience, and ability to think creatively to find the perfect loan solution, even if traditional options fall short. Mandeep's extensive experience working with various banks allows him to navigate different lender policies and secure the best fit for you.