Most of the lenders treat freelancers as casual workers who don’t have stable employment. However, not all banks think in the same way.
If you could meet their standard lending criteria and provide the required documents to prove your income, you can borrow up to:
- 90% of the property value: If you can prove that you have a strong income and have been paying all of your debts on time, you may be able to borrow 90% plus Lenders Mortgage Insurance (LMI). Lenders generally charge LMI when borrowing more than 80% of the property value.
- 95% of the property value: There are stricter qualifying criteria if you want to borrow 95% of the property value. For a better chance of approval, you’ll need to have a clean credit history, strong income, reasonable asset position, minimal debts and 5% in genuine savings. Typically, banks consider genuine savings as savings accumulated or a term deposit you’ve held in a bank account for at least 3 months.
- 105% of the property value: You can borrow up to 105% of the property value with a guarantor home loan. You can apply to remove the guarantee when the loan value gets down to 80% of the property value.
Please call us on 1300 889 743 and one of our mortgage brokers will call you to discuss your options.
Cheers,