Getting a home loan is already difficult enough but getting a home loan as a small business owner is even harder. Lenders like to see regular amounts of money coming in as it makes them feel less at risk. When you run a business for a living, your income can be anything but steady as its directly tied to the ebbs and flows of your business.
However, there are some measures you can take to ensure that your home loan application results in a swift and smooth approval.
Your lender will need to see valid proof of your income from the last two years of financial documents. This can include personal and business tax returns, financial statements and a notice of assessment from the Australian Tax Office. Your lender then uses this to assess how well you will be able to service the loan based on your known taxable income.
It’s possible you may be underselling how well your business is performing. A good accountant will ensure your financial records are accurate reflections of your business’s performance. Any unseen costs or changes in income can be confirmed with a letter from a qualified accountant to your lender.
A mortgage broker will help you find the right home loan that suits you and your situation. Importantly, they will also negotiate with a lender for you so that any issues that might be an obstacle for approval will be addressed by the mortgage broker.
While applying for a home loan as a small business owner may be difficult, completing these steps will make the process a little easier.
If you would like to learn more about applying for a home loan as a small business owner, please get in touch with us today.
