Australia has a lot of entrepreneurs around 1.2 million sole traders and 2.1 million business owners. If you fall into these categories, you’ve probably realised that it’s quite difficult to prove your income through traditional means. Contractors, freelancers and entrepreneurs don’t operate on regular, consistent work, and it can be frustrating trying to get a home loan approved without dependable proof of income. Thankfully, there is an option just for you called a low-doc home loan.
Have your documents ready
The good news is that you won’t have to provide as much paperwork as regular borrowers.
According to Canstar, you can submit two or more of the following documents to apply for your low-doc home loan:
- A signed Borrower’s Income Declaration stating your usual income
- Your registered business name
- Your Australian Business Number (ABN)
- Your Business Activity Statements (BAS) for the last 12 months
- You may need to confirm that you have been registered for GST for at least 12 months
Low-doc loans are geared toward allowing people who don’t have a PAYG. A common problem you’ll come across when trying to get a home loan is that your business activity statement isn’t as consistent as your lender would like. Be aware that low-doc loans are riskier, so your lender may ask you to pay a bigger deposit upfront.
The usual home loan application requirements still apply:
- A signed Borrower’s Income Declaration stating your usual income
- Your registered business name
- Your Australian Business Number (ABN)
- Your Business Activity Statements (BAS) for the last 12 months
- You may need to confirm that you have been registered for GST for at least 12 months
A low-doc home loan helps entrepreneurs and sole traders reach the Australian dream while participating in the turbulent nature of business. It’s a relief when you don’t have to worry about missing out on your dream house, just because your income statements tend to fluctuate.
What Low Doc Home Loans does Mortgage House offer?
The basis of Mortgage House’s mission is to strive to provide loan products and service outcomes tailored to the exact needs of every client. That’s why we are so focused on providing flexible home loans such as low doc mortgage. Talk to our award-winning team, using innovative new ways to get you into your home faster.
Click here to check out our offerings on low-doc home loans, or click here to speak with our experienced lending specialist.
