Re: How can a freelancer get a home loan approved?
Posted: Fri Oct 04, 2019 8:07 pm
Hello Carlton. Welcome to the forums.
Getting your home loan approved depends on how lenders will assess your application. Most lenders might think that your income is inconsistent and is project-based. Therefore, you will be subject to stricter lending criteria and might reduce your borrowing capacity.
However, if you do meet their lending criteria and provide the required documents to prove your income, you can borrow:
Cheers,
Getting your home loan approved depends on how lenders will assess your application. Most lenders might think that your income is inconsistent and is project-based. Therefore, you will be subject to stricter lending criteria and might reduce your borrowing capacity.
However, if you do meet their lending criteria and provide the required documents to prove your income, you can borrow:
- 90% of the property value if you have strong income and paid all your debts on time. Lenders mortgage insurance will be charged if you borrow over 80% of the property value.
- 95% of the property value if you have a clean credit history, strong income, reasonable asset position, minimal debts and have at least 5% in genuine savings.
- 105% of the property value if you can get a home loan with a guarantor. Once the loan drops down to 80% of the property value, then you can remove the guarantee.
Cheers,