Self-employed? Getting a home loan could be a breeze

Becoming your own boss is a dream for many Kiwis – but some self-employed borrowers may find it harder to get a home loan.

Thankfully, there are flexible lenders who can support you to find the right loan for your individual needs.

And, with the help of an experienced mortgage adviser who can guide you through the steps below, securing a home loan could be smooth sailing.

Evidence of income

First, you’ll need to provide evidence of your earnings. Traditionally, lenders have required at least two years of personal and business tax returns to confirm a borrower’s income, but some may accept alternative documentation.

While this differs between lenders, documents like bank statements, business activity statements or an accountant’s declaration can help.

This information helps the lender determine whether you can comfortably afford to make your regular loan repayments.

Improve your credit file

Another way to help get your loan application approved without any hiccups is to work on building a strong credit file.

The best way to do this is by paying down any credit cards or outstanding debts, and making sure you pay your bills on time.

Some lenders will consider borrowers with an imperfect credit history, but a good credit history can help self-employed borrowers to get their loan across the line.

Talk to your accountant

If you regularly see an accountant to support you with your business finances, it’s a good idea to seek their support.

With a good understanding of financial situation and your business performance, they may be able to write a letter on your behalf to help you with your loan application.

To find out more about flexible lending options suited to self-employed borrowers, contact your local Mike Pero Mortgage Adviser today.