For many self-employed New Zealanders, getting a mortgage through a major bank can come with some additional obstacles. At Personalised Mortgages, our expert advisers have been helping self-employed business owners find the right home for decades , and our services are usually free. If you’re self-employed and you’d like a no obligations discussion about how we can help you secure a home loan, call one of our friendly team on 09 838 9994 today.
There are a several common reasons why there can be additional obstacles for self-employed people applying for mortgages. When compared to applying for a loan as a salaried employee, banks may ask you to supply additional information such as finalised accounts, GST returns and company financial forecasts. Despite this requirement for additional information, self-employed business owners should not be put off applying for a home loan. If you’re unsure about the best way to get a mortgage while self-employed, you should talk to one of Personalised Mortgages professional advisers, who can explain and guide you through the entire process.
If you’re self-employed, there are things you can do to improve your chances of securing a mortgage . The most important of these is being able to prove your income. By keeping up-to-date and accurate financial records for your business, lenders will be able to better determine whether you’ll be able to afford your loan repayments. Lenders may ask for two years of business tax returns to confirm a self-employed borrower’s income, but can make allowances if you’ve only been in business for a shorter time.
Improving your credit history can also aid in securing a home loan when self-employed. This can be achieved by always paying your bills on time, paying off any outstanding debts and paying down any credit cards. It is worth noting that banks assess your debt based on your credit card limits and not your balance, so reducing your limits can be beneficial.
Non-bank lenders are another useful option for self-employed business owners to secure a home loan. Non-bank lenders providers. These institutions often provide more flexible lending rules than New Zealand’s major banks, but their loans often come with higher interest rates.
If you’re self-employed and would like to learn more about what home loan options are best for you, why not get in touch with Personalised Mortgages Our Auckland-based mortgage advisers will take the time to properly understand your business and your financial goals to help you find the right home loan at a competitive interest rate.