Property

How to buy a home when you're self-employed

RUNNING your own show is a dream for many workers - and it doesn't have to mean sacrificing that other great Australian dream of home ownership.

Self-employment can be personally and financially rewarding, and the latest Household Financial Comfort Report from ME Bank confirms that since mid-2014 self-employed workers have enjoyed a rise in financial comfort levels.

That's good news for the self-employed sector, and now could be the time for small business owners to take the plunge into home ownership - especially while interest rates are at record lows.

>> Hockey tells home buyers to get job that pays well

>> First home buyers need 'ambition': Abbott defends Hockey

>> Why Joe Hockey's comments are so appalling

Information is king

The process of securing a home loan isn't always as straightforward for self-employed workers as it is for traditional employees.

But that's not to say it can't be done.

The key stumbling block for lenders is determining whether self-employed borrowers have the capacity to manage loan repayments.

A PAYE borrower can provide pay slips as evidence of stable income, but most business owners would agree that their income fluctuates from time to time.

On the plus side, getting the right paperwork together can boost your chances of loan approval.

In particular, lenders look for consistency of income − this demonstrates that your business is ticking along and generating the income needed to maintain your loan repayments.

You'll need financial statements for the past two years, plus have both your business and personal income tax returns lodged and notice of assessments up to date.

Banks rarely accept financial statements that have not yet been lodged with the Australian Taxation Office.

Give your finances a spruce up

Further enhance your prospects of loan approval by tidying up your personal finances.

In determining loan eligibility lenders look at the credit limit on all your credit cards (not just the outstanding balance), so it can pay to cancel any unwanted cards and request a reduction in the limit on those cards you wish to hold onto.

Aiming to build personal savings over a period of six months will help to fund a home buying deposit, and it also demonstrates to lenders that you have the capacity and discipline to manage a home loan.

Seek advice

After you have all your paperwork together, make a date to speak with your broker or lender to establish what you can realistically afford to borrow.

This is critical to ensure you don't overcommit yourself.

Aim for a competitive rate

Finally, when it comes to selecting your loan, be wary of products pitched specifically at self-employed people, especially "low-doc loans".

These may require less paperwork but you can expect to pay a much higher interest rate.

If you can prove your income through up to date tax returns it is worth aiming for a regular "full documentation" loan and enjoying the savings of a competitive rate.

The top five things you need to know when buying a home:

  • Don't buy if you can't stay put
  • Start by shoring up your credit
  • If you can't put down the usual 20 percent, you may still qualify for a loan
  • Buy in a district with good schools
  • Before house hunting, get pre-approved

Topics:  gladstone property market real estate self-employed



Six hideaway bars to escape winter chill

THE last season of GoT finally uttered the words we’ve been waiting six seasons to hear and now that the weather has cooled down in Brisbane, “winter is here.”

Our six art gallery picks for a creative day out

Queensland's Gallery of Modern Art always has a fun, exciting and interesting exhibition on show for the whole family to enjoy.

YOU'D be mistaken in thinking Brisbane wasn't an arty city.

Brisbane's arts and culture events centre stage

You loved the film, now you're about to love the musical. Don't miss The Bodyguard The Musical in Brisbane this July.

THE arts and culture events you don't want to miss.

Homewares stores to fulfil your Instagram dreams

No Caption

You too can become an Insta-star with these fab stores.

Date nights under $50

Nothing is more romantic than a picnic with a cracking view.

NOT every date has to cost you a bomb.

Top 10 Brisbane experiences to cross off your bucket list

Do yourself a favour and get amongst the food truck scene. Eat Street is a great place to start.

A GOOD bucket list doesn’t have to span continents or cost millions.

Six mega sporting events you need to be at this year

Don't miss all the action trackside this season.

IF THERE is one thing Brisbane does damn well, it’s play host.

Gladstone anti-vaxxers rally in silent protest

The Gladstone anti-vaxxers rallied at Lady Nelson Park on Sunday.

'Forced': Gladstone anti-vaxxers protest for freedom of choice.

Reconciliation advocates look to the future

IMPORTANT DAY: Michelle Cooke, Oscar, 8 months, and Chris Condon at the National Reconciliation Week celebrations at Barney Point on the weekend marking the 50th anniversary of the 1967 referendum.

Focus on things to come 50 years after 1967 referendum.

A 'catastrophic failure' let black lung go on: inquiry

Ipswich man Percy Verrall was diagnosed with black lung disease in 2015.

Scathing report slams mine health system

Local Partners

Battle raging over money to fund CQ roads

Funding for CQ's road upgrades is being ripped out of the region leaving our projects languishing at the starting line says QLD Minister.


Win a $1000

GROCERY GIFT CARD!
Learn More

What to expect at Birds of Tokyo's Ipswich gig

The band will perform at the Racehorse Hotel on Friday.

BAND member Glen Sarangapany talks music, pub grub and doing shoeys

What public holidays are left in 2017

Ipswich residents will get the day off tomorrow for the show.

IPSWICH residents will get tomorrow off for the show

Caitlyn comes home to launch debut album

Gympie's Caitlyn Shadbolt will launch here debut album Songs On My Sleeve at an exclusive all-ages concert in Gympie on Friday, May 26.

Win tickets to Caitlyn's album launch

Six things you never knew about Men in Black

IT’S been 20 years since Men in Black first hit cinemas. Makes you feel old, doesn’t it?

10 strange stories behind famous sex scenes

Khaleesi and Khal Drogo in a steamy moment.

Every set has their own way of filming sex scenes

HBO spills new details on Game of Thrones’ final season

Game of Thrones’ eighth and final season will only have six episodes.

New details about what to expect from the eighth, final instalment.

Karl’s rant on Corby: ‘Made to look like idiots’

Karl Stefanovic is sick of hearing about Schapelle Corby.

Today co-host launched a tirade against Schapelle Corby media circus

Big Pineapple festival safety concerns as 100s walk home

LONG WALK HOME: Many festival goers opted to take a dangerous walk home due to transport difficulty following the Big Pineapple Festival in Woombye on Saturday.

Big Pineapple festival-goers have braved dangerous walks home

Shot at the live shows slips through Sally's fingers

Sally Skelton and Bojesse Pigram pictured after their battle performance on The Voice.

Sunshine Coast singer's dramatic elimination from The Voice

Gympie's Caitlyn Shadbolt releases debut album in concert

Caitlyn Shadbolt has launched her debut album in a concert at the Gympie Civic Centre on Sunday afternoon.

Caitlyn Shadbolt releases debut album in Gympie concert

Home to a sex worker: Sordid history of iconic Coast shed

Milojevic Djordjevic's daughter Linda at the derelict shed on Yandina-Coolum Road.

The shed was once a liveable 'barrack'.

This is real estate's billion-dollar man

Bob Wolff at AREC with John McGrath of McGrath Real Estate.

They don’t call him the “Billion dollar man” for nothing

Man's amazing comeback from monster crisis

Pat O'Driscoll agents Penny Keating and Doug Webber sold 56 Agnes St, The Range at auction over the weekend.

NOT long ago, he sold his possessions to pay staff. Now he's back.

Report reveals progress on $319m airport upgrade

Aerials of the Sunshine Coast.Jetstar plane in front of the Susnhine Coast terminal, Sunshine Coast Airport.

Over two dozen government approvals needed for airport expansion

Lost dough leaves sour taste after company collapse

Kathleen and John Mahoney from Sugar and Spice Bakery were stung after the collapse of Cantro Pty Ltd and are still owed money.

Supermarket operator collapse leaves sour taste for bakery

Ready to SELL your property?

Post Your Ad Here!