Getting Mortgage If You're Self-Employed

Being self-employed presents you with many opportunities that aren't available to people with day jobs. For one, you control your own time. This enables you to have unparalleled flexibility with your schedule. Another thing is that you are your own boss. That minimizes the pressure on you and could even motivate you to work harder.

On the flip side, there are challenges too. This is especially the case if you are planning on getting a mortgage. If you're working solo, the application process could eat up your time--time that you could have spent working and earning money. Another thing is that your income is susceptible to constant changes unlike people with regular salaries.

In this article, we'll show you how you can take the stress out of the mortgage application if you're self-employed, starting with...

  1. Using a mortgage broker. You'll do yourself a big favor if you do this one. A broker can help you through the entire process of choosing a lender, getting your paperwork done, and acquiring the property. You'll save a lot of time and money when you have a broker helping you.
  2. Getting help from your accountant. Your finances can be quite a tricky matter if you're getting a mortgage. Lowering your taxable income can lower the tax you need to pay, which can be a good thing. The downside, however, is that it also lowers your ability to get a bigger home loan. Thus, you need the help of your accountant to help you find the balance between a reasonable taxable income and your ability to borrow money.
  3. Getting a low doc home loan. Don't have the time to organize your financial documents? Then a low doc home loan may be the right loan for you. In this type of loan, the documentation required isn't as demanding as traditional home loans. As with the options we shared so far, this will help you save time and money in the process.

As you see, being self-employed shouldn't deter you from getting the property that you want. You don't even have to deal with the processes involved on your own, so long as you seek professional help.

Speaking of professional help, the qualified advisors at Rate Detective can help you find the right loan for you. By looking into your personal circumstances, they can show you rate comparisons of Australia's top lenders. Doing so enables you to find a loan that is truly tailor-fit to your needs.

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Published on November 11-th, 2012 in Home Loans
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.
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