Times are changing, particularly for home loans Sydney, and the idea of having a salaried job for life is becoming less appealing to many people, particularly younger generations.
The most recent World Bank statistics show 10.4 per cent of Australians said they were self-employed in 2013, but this figure may be just the tip of the iceberg.
A study from Upwork found that nearly one-third of working-age people did some form of freelance work in 2015, with 57 per cent doing so out of choice rather than out of necessity. Clearly, people’s attitudes to the traditional 9-to-5 grind are changing!
But the flexibility and better work-life balance that self-employment often provides can come at a cost. If you are looking to secure a home loan Sydney, for example, you may find that providers are hesitant to reach into their pockets for borrowers who don’t have a reliable income stream.
Buying a property when self-employed
Australian Bureau of Statistics data from December showed the number of people looking to buy property is on the rise. Housing finance commitments for owner-occupied homes jumped $46 million between November and December 2016.
It’s not difficult to see why people are keen to invest. The latest CoreLogic Hedonic Index showed property prices rocketed 10.7 per cent year on year across Australia’s capital cities in January 2017.
But if you’re self-employed, you may not have the same access to finance that salaried workers enjoy, which is why low doc loans could be the answer for you. These mortgages enable you to purchase a home even if you don’t have the financial documentation usually required to gain approval for a mainstream loan. Let’s look at some of the details you may have to provide for a low doc loan instead.
Applying for a low doc home loan
Everyone’s situation is different and lenders often have varying requirements, so you should always get in touch with a mortgage broker Sydney to discuss your low doc home loan needs.
Nevertheless, some of the typical documentation you may need to provide includes:
- Business activity accounts
- Your registered business name and ABN
- Previous bank statements
- A self-verified income declaration
- Accountant’s letter confirming your income
In some cases, you will also be required to show that you’ve been GST registered for at least 12 months.
Does this sound like the right option for you? Would you like to discuss the possibility of a low doc home loan? Please contact us today for more information