How much can I borrow if I'm self-employed?

Any general questions you might have in regards to loans and finance.
Post Reply
User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How much can I borrow if I'm self-employed?

Post by Otto Dargan »

Hi Kathy,


Welcome to the forums.

Based on your situation, most lenders will limit your borrowing power to 80% of the property value.

The reason is that your sole income comes from your piano lesson business and you have only been running your business for 14 months.

Assuming that you haven't completed your latest personal and business tax return, there are certainly low doc loan options available.

Specifically, you'll have to apply with a lender that will accept less than 2 years' ABN.


Obviously, to be considered, you'll need to have a larger deposit.

It's also worth noting that Lenders Mortgage Insurance (LMI) will apply when borrowing over 60% of the property value.

For standard borrowers with full financials, LMI only applies after 80 LVR.


Please call us on 1300 889 743 or enquire online to find out if we can help you qualify as a self-employed borrower with less than 2 years ABN.


Cheers,
Otto
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: How much can I borrow if I'm self-employed?

Post by Otto Dargan »

Hey Kathy,


Given your situation, one option that might be of interest to you is the guarantor home loan.

With a guarantor home loan, you can borrow 100% of the purchase price, you don’t need a deposit and you also don’t need to pay the LMI.

Your guarantor, will provide a guarantee for your home loan which is secured on their property. Once you have paid off a portion of your loan or your property has increased in value, you can apply to remove the guarantee.


Cheers,
Otto
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: How much can I borrow if I'm self-employed?

Post by Otto Dargan »

Hey,


The LMI premium rates table can tell you the premium rate you will be charged by one of our major lenders if you were to apply for a low doc home loan.

The amount of LMI you’d have to pay varies depending on the lender and their risk appetite and how their LMI provider is.

. Our mortgage brokers specialise in low doc mortgages.

They can quickly assess your situation and get back to you with an option that's right for you..

You can also call us on 1300 889 743 or fill in our free assessment form and one of our expert mortgage brokers can help you through the process.


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

Post Reply