Home News Self-employed home loans

Self-employed home loans

Font size :

Q. I own a small business that has operated for five years. My family and I are currently renting a property but we are keen to own our own house. However, a relative of mine, who is also self-employed, said he was rejected for a home loan as he was not able to provide a completed tax return. Do I need to provide tax returns when I apply for a home loan?

A. Applying for a home loan as a self-employed person can seem more complex at times. The reason for this is that self-employed people are considered a higher risk to lenders compared to employed people.  Tax returns are just one example of how you can verify your income. However, there are alternative ways to show that you can afford a home loan.

One example is your business’ Business Activity Statement (BAS). The BAS shows the turnover of a business’ profit. As this statement is usually filled out either monthly or quarterly, it is considered an applicable source of verification as it reflects the current status of your business’ financial situation.
Another way you can verify your income is to have your accountant speak with the lender so they can confirm the state of your business’ financials.

It is important to note that tax returns are considered the most common and traditional form of verification. Therefore, if you verify your income in an alternative way, some lenders may charge a higher interest rate. State Custodians offers a range of specialised loans for self-employed people, if you would like to learn more about these specialised loans, please click here.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

Why choosing the right mortgage is hard for first-home buyers Why choosing the right mortgage is hard for first-home buyers

Many feel overwhelmed by the sheer range of products and interest rates on offer, a new survey reveals Read more

Mortgage applications drop in second quarter Mortgage applications drop in second quarter This marks the “beginning” of a downward trend, says Equifax executive ... Read more

To break monopoly, many smaller lenders could become banks To break monopoly, many smaller lenders could become banks The proposed change could break the Big Four’s monopoly over the mortgage market and help families get cheaper home loan rates ... Read more

Borrowing against the home: A strategy to pay for aged care Borrowing against the home: A strategy to pay for aged care Such debts can generally be divided into long-term and short-term loans ... Read more

More mortgage news and articles

Sponsored Links

Monday, Jul 24, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Whether you're a first homebuyer, looking to refinance, or investing, it's important to have the right loan for your needs. Just fill in a few details below and one of our trusted mortgage advisers will contact you.

A quick & easy way to find the right home loan
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords