There is a growing number of people in our society who choose to work for themselves and are considered self-employed. These people may be required to seek independent specialist mortgage when buying a home rather than traditional mortgages.
The demand for self-employed loans (home loans and personal loans) has risen with an increase in the number of self-employed Australians.
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It is typically easier for people who work as workers to get mortgages up the street levels than the self-employed. This is because they typically have documents proving their earnings if they are viewed by creditors as having security of income.
Lenders can sometimes consider mortgage applications to standard high-street of independent candidates if they can provide three years the value of accounts which show a healthy profit.
It is not possible for many self-employed because they may have been in business less than three years and the income reported on their accounts may have been mitigated for tax purposes.
In recent years, many lenders have recognized this dilemma and have subsequently made independent specialist mortgage market to cater.
Instead of providing proof of income accounts, pay slips or any other document, the applicant mortgage self-employed simply declare their income on the mortgage application form.
The various independent mortgage loans that are available from different lenders have different requirements so it is a good idea to speak to an independent mortgage advisor to find out what the self-employed mortgages are most appropriate to your situation before applying.