Running your own small business comes with a level of freedom and flexibility, but this can leave little time for figuring out how to get a home loan. Lenders will scrutinise not only your personal circumstances, but also those of your business – which can be daunting. That’s why we’ve put together real-life guide to self-employed home loans, to help take the stress out of the mortgage process.
Use a financial plan and forecast
You can’t always see what’s coming around the corner for your business. But a little forward thinking can keep you from being on the back foot when you apply for your loan. Track your cash flow on a monthly basis and compare where you are each month. This can help you forecast and see emerging patterns, such as seasonal demand. This can help you make better business decisions and predict cash flow problems before they happen. Also make sure you set aside money for GST and tax!
Talk to the experts
When talking to a Pepper Money lending specialist, be up front about the ups and downs of your business. The little details matter. While consistent income is a factor when assessing a loan, Pepper Money has been helping small business owners with self-employed home loan options across Australia and New Zealand for more than 21 years. We understand the challenges of small business, and how cash flow has a knock-on effect. As Australia’s leading non-bank lender^, we’re in the business of finding home loan solutions that fit your circumstances.
Taxable income can also be confusing for the self-employed. It could be a good idea to talk to a financial adviser or tax professional about how your taxable income could impact how much you can borrow for your loan. They might also be able to help you learn more about available tax deductions and explain how to best set aside money for tax throughout the financial year.
This article provides you with factual information only and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser. Neither Pepper nor its related bodies, nor their directors, employees or agents accept any responsibility for loss or liability which may arise from accessing or reliance on any of the information contained in this article. For information about whether a Pepper loan may be suitable for you, call Pepper on 13 73 77 or speak to an accredited Pepper Money broker.
All applications are subject to the credit provider’s credit assessment and loan eligibility criteria. Terms, conditions, fees and charges apply. Information provided is factual information only and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser.
©Pepper Money Limited ABN 55 094 317 665; AFSL 286655; Australian Credit Licence 286655 (“Pepper”). All rights reserved. Pepper is the servicer of home loans provided by Pepper Finance Corporation Limited ABN 51 094 317 647. Pepper Asset Finance Pty Limited ACN 165 183 317 Australian Credit Licence 458899 is the credit provider for asset finance loans.