A guide for small business owners looking to apply for a home loan – from the loan comparison specialist, Savvy
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Buying your first home is a big step, especially when you’re also trying to run your own company as a small business owner. Savvy looks at the different home loan options available to small business operators and the paperwork you may need to supply when applying for a home loan. We can help you compare and save for all your finance needs.
As a small business owner, you’re self-employed. Previously, the big banks were reluctant to lend money to self-employed people, but that situation changed when online lenders stepped up to fill in that gap in the Australian home loan lending market.
As long as your company has been running for at least two years and is showing a good profit, there’s no reason why you can’t apply for a home loan in the same way as any other PAYG employee and be confident of being offered a very reasonable low interest rate.
You have several options available to you if you don’t quite meet the standard home loan eligibility criteria, though. These include:
The paperwork that you’ll need to provide to your lender will have to prove your identity, your assets and liabilities and how much it costs you to live. You will also have to provide information about your company, and how it is performing.
Personal documents you’ll need include:
Personal Identification:
You’ll need to provide 100 points of ID, including at least one document that includes your photograph and a signature. These may include:
Details of your income:
A list of your assets:
This should include the registration certificates or other proof of ownership of all:
Also, include in your assets list:
A list of your liabilities:
This should include all monies that you owe to other people or institutions including:
A list of your living expenses
This should show details of how much it costs you to live, so it should include figures for items such as:
You can use Savvy’s budget planner calculator to combine all your household expenditure items into one single document to make your loan application easier and give you a better idea of what sort of loan repayment you can afford.
Business documents required
In addition to the above personal documents, if you’re looking for the best home loan for a small business owner, you’ll also need to supply the following business documents:
As a small business owner, your personal income may grow as your company grows – so you should think about a loan that is as flexible as possible. This may mean a variable home loan that offers you plenty of additional features may be your best option. Additional features that can come with a variable rate home loan include:
However, on the other hand, a fixed rate home loan will offer you the certainty of knowing exactly how much your loan repayments will be for the entire period of the fixed rate. This known quantity could be valuable to you as a small business owner if you are juggling all the costs of growing your business.
You don't have to pay a cent to compare home loans with us, enabling you to do so at any time.
You can fill out a simple online quote via our form without having to worry about sorting through heaps of paperwork.
With a panel of reputable mortgage lenders behind us, you can rest assured you'll be comparing high-quality options.
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