Can a freelancer get a home loan?

Any general questions you might have in regards to loans and finance.
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Otto Dargan
Mortgage Specialist
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Joined: Sat Sep 06, 2008 5:55 pm
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Re: Can a freelancer get a home loan?

Post by Otto Dargan »

Hi connor and welcome to the forum.

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.
Moreover, your borrowing depends on the income evidence you could provide and the time you have been self-employed for.

Please call us on 1300 889 743 and one of our mortgage brokers will call you to discuss your options.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Can a freelancer get a home loan?

Post by Otto Dargan »

Hi connor,

Most freelancers usually work on a contractual basis and aren’t often committed to long-term employment.

Generally, lenders will need you to provide at least: Your tax returns will help prove that your income is consistent and ongoing. This is why most lenders require freelancers to have been self-employed for at least two to three years.

You can complete our free online assessment form or call us on 1300 889 743 or and speak with one of our credit specialists. We can help you understand and prepare all the documents you’ll need to get approval on a freelancer mortgage.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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