Loans for the self-employed

There’s a raft of loan options available for Australian business owners.


If you’re self-employed or own your own business, pulling together all of your financials can be a tough ask – but that shouldn’t stand in the way of securing a home loan.

Despite a recent tightening of lenders’ credit criteria for self-employed borrowers, there are still options available for business owners who struggle to provide financial statements or tax returns.

Low doc loans, for example, have been specifically designed for borrowers who earn enough to meet repayments but have a tough time providing the documents required for a standard home loan.

Low doc loans usually require borrowers to submit a standard loan application and income declaration. Borrowers can apply for investment or owner occupied home loans and even small business loans

A loan-to-value ratio (LVR) of 80 per cent is considered to be standard with these products though higher amounts may be available through some lenders.

Because of the added risk to the lender in providing this type of loan be aware that special conditions do apply and low doc borrowers may face paying a higher rate of interest.

Low doc pros

• Borrowers can self-certify their income

• Borrowers can access up to 80 per cent of the property’s purchase price

• Application process is hassle free

Low doc cons

• Generally attract a higher rate of interest

• May have more fees

• Are becoming harder to secure

Loans for the self-employed
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