Home loans: self-employed under 2 years
Most banks won't accept your home loan application if you've been self employed for less than 2 years, but you probably already know that. The good news: even some of the major banks will accept it with a full year's tax return under their low doc loans. But if you don't have a full year's tax return, there are still lenders that will give you a low deposit home loan at 90% LVR. Please note: all information on this page refers to applicants that have been self employed for 12 months, but not yet 2 years. Please refer to our self employed home loan requirements page if this is not you.
We can help get you a mortgage when self employed for under 2 years.
At minimum, you will need a 10% deposit & to have been self-employed for 1 year or more. With a 10% deposit however, you should expect to pay high interest rates and fees - much higher than standard rates. But if you want to get your home now, then we can get you approved at 10% and refinance to a lower rate in another 12 months if you're situation continues to improve.
Not sure how a Mortgage Broker can help you? Check out our self employed home loans page. Not self employed? Look at our Mortgage Broker Brisbane page.
Assuming you've been self employed for 1 year, our lenders usually have 3 methods of verifying your income:
|How we can verify your income without 2 years ABN:|
|6 months BAS. Lenders will calculate your income from BAS differently - so we'll need to calculate this|
|Accountant's Letter. Usually followed-up with a phone call to the Accountant to confirm.|
|6 months' bank statements.|
Some lenders will require two of the above verifications, however we have lenders that will accept only one. Given the option, we would prefer to use BAS and calculate the exact figure we can use for income.
|Requirements for a self employed mortgage under 2 years:|
|10% deposit minimum.|
|Sufficient income to make the loan repayments.|
|Lower interest rates available at 80% LVR.|
|Vacant land and construction excluded.|
|Features of a self employed home loan less than 2 years:|
|Fixed and variable interest rates.|
|Credit impairments acceptable at lower LVRs.|
|Secured by residential security. Purchases only at 90% LVR.|
|Maximum LVR of 90% including fees.|
|Minimum loan amount of $50,000.|
FAQ about our self employed home loan under 2 years:
Why is it so difficult to get a home loan when self employed for under 2 years?
Most businesses don't have a consistent income for the first 12 months, it is not until 2 years that most banks feel they can get a sufficient grasp on how well the business is doing.
What are the interest rates for a home loan when not employed for 2 years?
At 80% LVR, about 1.5% above competitive rates. At 90% LVR, about 3% higher than competitive rates.
Do you charge for your service?
No. The lender pays us a commission for a successful application so you needn't pay us anything.
How long does an approval take?
This varies greatly depending on the lenders' workload, but usually 1 - 2 weeks.
Do you only service Brisbane?
We can do self employed home loans under 2 years all over Australia, often over the phone. Our Mortgage Broker is however based in North Brisbane, and as such can service all surrounding areas in person: Albion – Alderley – Ascot – Aspley – Bald Hills – Banyo – Boondall – Bracken Ridge – Bridgeman Downs – Brighton – Brisbane Airport – Carseldine – Chermside – Chermside West – Clayfield – Deagon – Eagle Farm – Everton Park – Fitzgibbon – Gaythorne – Geebung – Gordon Park – Grange – Hamilton – Hendra – Kalinga– Kedron – Keperra – Lutwyche – McDowall – Mitchelton – Myrtletown – Newmarket – Northgate – Nudgee – Nudgee Beach – Nundah – Pinkenba – Sandgate – Shorncliffe – Stafford – Stafford Heights – Taigum – Virginia – Wavell Heights – Wilston – Windsor – Wooloowin – Zillmere.
Will a credit check be required?
We can pre-asses your application without a credit check, however the lender will be required to do one upon application.