a lot more with lenders/credit providers when applying for a home loan. But, it does not mean that all self-employed borrowers have to struggle with getting finance. It just means you might need the services of an expert finance broker on your side, who is a specialist at providing home loans for self-employed persons. Choose a finance broker who is willing to work on your behalf with the lenders/credit providers and who will help you in securing a home loan. Not to mention, he/she should also get you the right home loan that suits your needs and budget.


Why You Need Expert Advice?

Before you think it is impossible for self-employed borrowers to get a home loan, you need to sit down with an expert and professionally qualified finance broker, who will:

>> Establish what taxable income level you need to apply for a home loan

>> Establish your borrowing power (i.e. how much you can borrow), and


>> Determine your eligibility for a home loan

When assessing your eligibility for a home loan, the finance broker should be able to see if your business is maintaining a level of income that is suitable to meet the minimal “servicing” requirements.

Income Verification Requirements for Self-Employed Individuals

To confirm your income and qualify for self-employed home loans, lenders/credit providers will require from you:

>> Your most recent two years Personal Income Tax Returns


>> Your most recent two years Business Income Tax Returns, and

>> Your last two years Financial Statements (Detailed Profit and Loss Accounts and Balance Sheet)

What if I have been Self-Employed for under a Year?

Well, it is not impossible to get a home loan with your employment status; it just means the finance broker will have to work hard to secure your eligibility for a home loan. For example, you are now self-employed as a sub-contractor carpenter. But, you were employed in the same industry (i.e. line of work), and you worked for someone else for five years before you became a sub-contractor. You can still be considered for a home loan. Because, you are still working in the same industry and you are doing the same work. The only thing that has changed is the manner in which you are being paid.

By Haadi