Self Employed Loans

Choosing between fixed and variable loans depends on your personal circumstances, risk tolerance, and property investment strategy. Variable loans offer flexibility with features like offset accounts and unlimited additional repayments, which can be valuable for managing cash flow and reducing interest costs. They also allow you to refinance without significant break costs if your circumstances change. Fixed loans provide repayment certainty for the fixed period, which helps with budgeting and cash flow planning, particularly important for self-employed and professionals with variable income. Some investors use a split strategy, fixing a portion for certainty while keeping part variable for flexibility. We discuss your specific situation including income patterns, other investments, timeframes, and risk preferences to recommend an approach aligned with your wealth-building strategy. The decision should consider how the loan structure supports your broader financial goals rather than focusing solely on predicting future movements.

Using equity in your existing property is one of the most powerful strategies for building a property portfolio. As your property increases in value and you pay down the loan, you build usable equity that can serve as a deposit for additional properties. Lenders typically allow you to borrow against up to 80% of your property's value without requiring mortgage insurance, though accessing higher percentages is possible with additional costs. We calculate your available equity, assess whether using it aligns with your wealth-building goals, and structure the lending appropriately. This might involve establishing a separate loan account secured against your existing property to fund the new purchase deposit and costs. We ensure you maintain adequate buffers and don't overextend, while maximising your investment opportunities. This strategy allows professionals to build wealth without needing to save large cash deposits for each subsequent property.

Self-employed borrowers typically need more comprehensive documentation than wage earners. Generally, lenders require two years of tax returns including the full assessment notices from the ATO, two years of financial statements for your business (profit and loss, balance sheet), recent business activity statements, and evidence of GST registration if applicable. You'll also need to provide standard identification documents, details of your assets and liabilities, and evidence of genuine savings if you're not providing a 20% deposit. However, requirements vary significantly between lenders and loan types. During our initial consultation, we assess your specific circumstances and provide a detailed checklist of exactly what you'll need. We also review your documents before submission to ensure they present your financial position optimally and meet each lender's specific requirements.

Pre-approval (also called conditional approval) is an initial assessment where a lender reviews your financial situation and indicates they're willing to lend you a specific amount, subject to certain conditions. This typically involves reviewing your income documentation, credit history, and existing commitments. Pre-approval gives you confidence when house hunting and demonstrates to vendors that you're a serious buyer. However, it's not a guarantee of lending. Formal approval occurs after you've found a property and the lender has assessed both your finances and the property's suitability as security. The lender conducts a valuation and completes final checks before issuing formal approval. This distinction is important because pre-approval allows you to shop for property with confidence, but formal approval is required before settlement can proceed. We guide you through both stages and ensure all conditions are satisfied efficiently.

Mortgage brokers in Australia are typically paid through commissions from the lenders whose products we arrange, meaning our services usually don't cost you anything directly. When a loan settles, the lender pays us an initial commission, and most lenders also pay smaller ongoing commissions while your loan remains active. This commission structure is regulated and disclosed transparently. Importantly, we're legally obligated to act in your interests regardless of commission variations between lenders. Our recommendations must be suitable for your circumstances, not based on what pays us more. For some specialised services or commercial lending scenarios, we may charge service fees, but these are always discussed and agreed upon before we proceed. Our goal is building long-term relationships with clients as your property portfolio grows, so recommendations that serve your wealth-building objectives benefit everyone involved.

Building wealth through property requires strategic financial planning beyond simply obtaining a loan. We work with self-employed clients, professionals and high-income earners to structure their finances in ways that maximise borrowing capacity and tax efficiency. This includes advising on optimal ownership structures, using equity in existing properties to fund additional purchases, and timing acquisitions to align with your business income cycles. We help you understand serviceability calculations so you can make informed decisions about when to expand your portfolio. Our approach focuses on sustainable growth, ensuring each property acquisition strengthens rather than strains your financial position. We also connect you with relevant professionals such as accountants and financial planners to create a comprehensive wealth-building strategy.

The timeline for mortgage approval varies depending on several factors including lender workload, the complexity of your application, and how quickly documentation can be gathered. For straightforward applications with all documents ready, some lenders can provide conditional approval within 48 hours to one week. However, for self-employed borrowers with more complex financial structures, the process typically takes two to four weeks from application to formal approval. The pre-approval stage, where we assess your situation and prepare your application, usually takes one to two weeks depending on document availability. Once formal approval is granted, settlement generally occurs four to six weeks later. We manage this entire timeline proactively, keeping you informed at each stage and addressing any lender questions promptly to prevent delays that could jeopardise property purchases.

Loan serviceability refers to your ability to meet loan repayments based on your income, existing debts, and living expenses. Lenders use complex calculations to determine how much they'll lend you, factoring in buffer rates above current interest costs and making assumptions about your expenses. For self-employed, professionals and property investors, serviceability becomes increasingly important as you acquire additional properties. Each investment property affects your serviceability differently depending on whether it generates positive or negative cash flow. Understanding serviceability is crucial for wealth building because it determines your borrowing capacity now and in the future. We help you structure your finances and choose appropriate loan products to preserve maximum serviceability, enabling continued portfolio growth. This might involve strategies like interest-only loans, offset accounts, or specific ownership structures that optimise your borrowing position.

Self-employed individuals often face additional scrutiny from lenders compared to traditionally employed borrowers. Banks assess your income differently, requiring detailed financial statements, tax returns, and business activity statements. A specialist mortgage broker understands how to present your financial position in the strongest possible way, knowing exactly what different lenders look for and which ones are more favourable towards self-employed applicants. We save you countless hours of research and applications, prevent unnecessary credit enquiries that could harm your borrowing capacity, and often secure approval where direct applications might have been declined. Our knowledge of policy differences between lenders means we can match you with institutions that understand your industry and income structure.

A finance and mortgage broker acts as your professional advocate in securing property loans and other financial products. Rather than approaching banks directly, you work with a broker who has access to multiple lenders and understands the complexities of loan structures. We assess your financial situation, identify suitable lending options, prepare your application with supporting documentation, and present your case to lenders in the most favourable light. This is particularly valuable for self-employed workers whose income structures may not fit traditional lending criteria. We handle negotiations, manage the application process through to settlement, and provide ongoing support for refinancing or future property acquisitions as your wealth grows.