Self-employed borrowers should utilise a mortgage broker as obtaining the right home loan can be a complicated process for anyone, but taking out a mortgage can be even more complex for self-employed individuals in Western Australia.
Being your own boss can be incredibly freeing and fulfilling, but it can also make it harder to meet the financial qualifications most lenders use. Fortunately, utilising the services of a qualified mortgage broker in Cockburn or surrounding areas can help streamline the process and ensure you get the loan you need.
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For many self-employed borrowers, the most difficult part of taking out a home loan is providing the required paperwork to show proof of steady income and necessary financial assets.
This is why lo-documentation loans, also known as Lo-doc loans, are a popular option for many self-employed Australians. Lo-doc loans allow borrowers to self-declare their incomes and use special documentation – such as an accountant’s letter, bank statements or business activity statement – to support their income. However, Lo-doc loans can often come with higher interest rates and find the Lo-doc mortgage that suits your needs can be easier said than done.
Luckily, a mortgage broker in Perth can help you identify and qualify for lo-doc loans with competitive interest rates that are tailored to your financial circumstances.
In addition to helping you explore specialised loan options, a mortgage broker can also assist you in saving the most valuable asset self-employed individuals have – time.
Running your own business is a full-time affair, making it much harder to devote time and energy to finding the most suitable mortgage and undertaking the paperwork that goes with it. The right mortgage broker can simplify the process and walk you through each step, helping you to save much-needed time and effort.
Self-employed Australians typically arrange their finances in specific ways to maximise their lifestyles.
For instance, self-employed individuals will likely use special deductions to reduce their tax burden. While this can help you pay less in taxes, it can actually work against you when taking out a loan, as a lower tax bill indicates lower income.
A mortgage broker can help you determine ways in which to become a stronger borrowing candidate, helping you choose strategies involving taxes and beyond to make obtaining home finance easier.