That’s why proof of ‘standard income’ is often something we don’t have when it comes to applying for a home loan.
Yet research shows that 26% of Aussies that were turned down for a loan were declined because of employment status3. What’s the alternative? It’s Pepper Money – Australia’s Best Specialist Lender.
If you’re having trouble because of your type of employment or because your income type doesn’t tick the right boxes (non-standard income) talk to us at Pepper Money, we'll do our best to help find a way forward.
Ready to take the next step?
Make an enquiry today and a Lending Specialist will contact you as soon as possible.
Often the big banks make self-employed workers jump through extra hoops to get a home loan, or simply classify them as too high-risk. However, at Pepper Money, we can help those who have a non-standard income – even those with just 6 months ABN or BAS activity.
Depending on the level of documentation that can be provided, self-employed borrowers commonly fall into two buckets; full doc and alt doc.
There are two types of income documentation options available for self-employed borrowers; full documentation (Full Doc) and alternative documentation (Alt Doc).
|Full Doc||Alt Doc|
We also consider a range of income types for the self-employed including:
- Net profit before tax
- Director wages/salaries
- Addback of Depreciation
- Addback of Interest on debts being refinanced
- Addback of Superannuation contribution in excess of 9.5%
- Interest & Dividend income
Note: All applications are subject to thorough credit assessment and loan suitability criteria. If you have any questions, give us a call on 13 73 77.
If you work for yourself or fall under the category of ‘self-employed’, applying for a home loan can be quite a challenge even with regular income. Unfortunately, many lenders perceive self-employed people as high-risk borrowers.
But this does not necessarily mean you cannot qualify for a home loan. It just means you might need to provide a little extra documentation and look beyond the big banks for a lending solution. Here are some tips and tricks to get your loan application approved:
On some of our loans, we offer finance up to 95% of the purchase price, meaning you can start to look at buying a house once you've saved at least 5% of the purchase price. The deposit amount may also depend on the property and area you’re looking at purchasing.
Remember, there can be extra costs involved when buying a house. You’ll need to cover government and legal fees, which can’t be added to your home loan balance.
- The size of your deposit
- Nature of the security property
- Loan to value ratio (LVR)
- Your income
- Credit history
- Any assets you own
- Any liabilities or credit obligations
- Chosen repayment type – paying off interest-only, or principal and interest
- The purpose of the loan – if it’s for an owner-occupier or investment property
The risk loading will apply for the loan term.
Certain Pepper Money fees can be added to your loan balance, while others will need to be paid upfront – including establishment or application fees, and risk or mortgage insurance fees. Other smaller fees (like fees for an offset sub-account) will be added to your loan each month.
You can view a summary of our home loan fees here.
You’ll also need to pay solicitor fees along with local and state government taxes and levies. These can’t be added to your loan balance and are usually paid upon settlement.
Your Pepper Money Home Loan Journey can take up to six weeks – this is the typical timeframe for a home purchase, however the process may be quicker if all the necessary documentation is provided sooner.
Delays in decisions are often caused by incorrect or missing documentation.
Our home loan borrowing capacity calculator asks a few personal and financial questions to calculate an estimate of how much you may be able to borrow with Pepper Money. After finding out how much you could potentially borrow, you can then either speak to a lending specialist about your situation, or continue on to get an indicative interest rate online.
We’re one of Australia's leading non-bank lenders!
We were established in 2000 to help Australians achieve their financial dreams through providing flexible financial solutions that factor in the ups and downs of real life. Since then, we’ve become one of the largest, award-winning non-bank lenders in Australia and New Zealand.
To see the full home loan FAQs, click here.
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 licenced financial or ta adviser. All applications are subject to credit assessment, loan eligibility criteria and lending limits. Terms, conditions, fees and charges apply. The actual interest rate will depend on the borrower’s circumstances and the information verified during the loan application assessment.
For more of your questions answered visit our Help Centre.