Getting Irregular Income? Look Into A Low Doc Home Loan.
People who are self employed suffer a lot of hardship when they are trying to arrange a mortgage. It does not seem fair as most of these people are as financially viable as anyone. The way self employment works, however, has not traditionally supported the self employed person when they wish to apply for an Australia home loan.
The problem usually lies with your ability to prove your income without any doubt for the previous few financial years. If you are self employed this can be a red tape horror in terms of necessary documentation. Banks can have you running around for days and then still refuse you when you think you have jumped through all their hoops. Sometimes the problem may be an inability to accurately predict your next year's income due to the fluctuations involved in self employment.
If this is something you can relate to then you will be pleased to hear about a new type of loan on the market. It is officially called a low doc home loan and it is designed to make things easier for people like you who are looking for Australian home loans. Many lenders are starting to offer these types of loans with various conditions to suit the lender. You often have a choice of variable or fixed rate mortgage the same as you do with a regular loan.
There are of course pro's and con's the same as with any home loan product. You need to shop around and read the fine print to make sure you are getting the best deal you can get to suit your situation.
Some lenders insist you pay for lender mortgage insurance once you get into borrowing upward of eighty percent of the property's value. This is not necessarily a bad thing but it is something you need to be aware of from the outset. Banks also associate a higher level of risk with self employed customers due to a perceived instability in their income. Because of this it is possible they will charge a higher rate for you mortgage. On the bright side after a period of reliable payment many lenders will reduce this rate. It pays to discuss this with your lender when you first start shopping for your Australian home loans.
The things that may work in your favor on this type on loan are many. Proof of finance is not needed so if this has always been an obstacle to your acquiring your own home then that is great news for you. A simple financial statement will suffice. Most prominently irregular sources of income are considered. A big bonus for the self employed.
To help you check the fine print and locate the best deal for you, you will need to check with someone who knows what they are doing. These types of areas can be very complicated and a wrong choice can be exclusive. You would do well to contact the experts at DirectMoney Home Loans.
The problem usually lies with your ability to prove your income without any doubt for the previous few financial years. If you are self employed this can be a red tape horror in terms of necessary documentation. Banks can have you running around for days and then still refuse you when you think you have jumped through all their hoops. Sometimes the problem may be an inability to accurately predict your next year's income due to the fluctuations involved in self employment.
If this is something you can relate to then you will be pleased to hear about a new type of loan on the market. It is officially called a low doc home loan and it is designed to make things easier for people like you who are looking for Australian home loans. Many lenders are starting to offer these types of loans with various conditions to suit the lender. You often have a choice of variable or fixed rate mortgage the same as you do with a regular loan.
There are of course pro's and con's the same as with any home loan product. You need to shop around and read the fine print to make sure you are getting the best deal you can get to suit your situation.
Some lenders insist you pay for lender mortgage insurance once you get into borrowing upward of eighty percent of the property's value. This is not necessarily a bad thing but it is something you need to be aware of from the outset. Banks also associate a higher level of risk with self employed customers due to a perceived instability in their income. Because of this it is possible they will charge a higher rate for you mortgage. On the bright side after a period of reliable payment many lenders will reduce this rate. It pays to discuss this with your lender when you first start shopping for your Australian home loans.
The things that may work in your favor on this type on loan are many. Proof of finance is not needed so if this has always been an obstacle to your acquiring your own home then that is great news for you. A simple financial statement will suffice. Most prominently irregular sources of income are considered. A big bonus for the self employed.
To help you check the fine print and locate the best deal for you, you will need to check with someone who knows what they are doing. These types of areas can be very complicated and a wrong choice can be exclusive. You would do well to contact the experts at DirectMoney Home Loans.
About the Author:
Guy Baldwin is a director of the website http://www.directmoneyhomeloans.com.au. If you'd like to get assistance contact Directmoney at 1300 882 432 and get the best low rate home loans for you, and their services are free of charge.
posted by Credit Counseling at
7:01 PM
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