Can Self Employed get a house sooner that PAYE borrowers?

Buying a home is becoming a distant dream for a growing number of young buyers as price growth increasingly outstrips savings in Melbourne.

Over the past year, first-home buyers looking to purchase a property in Melbourne VIC have had to put aside an extra $100 ~ $200 a week for a house deposit as house prices have jumped up high.

Australian Bureau of Statistics says that the average home loan in Melbourne taken by first-home buyers in Victoria is $335,000. On top of that add a 20 per cent deposit. That means  at $418,750 need a pre-tax income of about $1746 a week to fund the mortgage.

According to the research, the average Victorian full-time weekly earnings is only $1455.

So when can people earning average incomes afford enter the property market?

Let’s see how does it for self -employed/business owner!

There are only difference between self – employed and PAYE borrowers is that it’s more difficult for a bank to work out whether you can afford to meet your mortgage repayments. A PAYE borrower submits one simple payslip to show their income while a self- employed person has to provide complicated financial situation.

We have helpful tips for self-employed home loan borrowers:

1. Look for right lender

Don’t just go to the same bank where you have your savings or business account. Banks rely on this convenience factor and because they don’t have to try to win your business and you know that  you won’t get the best loan on offer. Banks never lose! So talk to many lender as many as possible. Bank is not the only option.

2. Is your financial information up to date? or if you are a new business owner? Don’t worry we got you!

If you are getting a home loan from bank, have your last 2 years financial statements up to date and ready. Banks rarely will accept financial statements that have not been lodged with the Australian Taxation Office. Or if you are a new business owner that nothing provide to bank, you can count on us. Because with NO  BUSINESS HISTORY, we can still help you to get your dream house sooner!

3. Understand how you are being assessed

Please Understand that banks use different methods of assessment for self- employed people. Banks won’t take any chances. Unlike banks, At Vital Capital we review your finance situation differently.

4. Understand where you at

If you are in a situation as below, we can still take your application and review in 5minutes.

5. Business loan = higher rate?

If you have a business loan, the bank is probably going to charge you a higher rate interest rate and require annual review which means you will pay the cost and  you time and extra fees. Know that some lenders will lend for business purposes at home loan rates if you use residential property as security

6. Think about your future

Think about the near future . you look forward 3 – 5 years

7. Credit History

Credit History, it has always been important for small business owners to protect their credit rating but at Vital Capital , we are different.

Will I get my home loan approved?

Yes! We do!

Give us a call in one no obligation phone call, we’ll point you in the right direction.

So if you want to get your dream home sooner, Talk to us today!