Best Home Loan for Self-Employed

Lpearl2013 on 15/07/2020 - 12:31
Last edited 15/07/2020 - 12:41 by 1 other user

I am myself a PAYG employee however my partner has been self-employed for the same business for the last 10 years. PS. the business is profitable.

Our fixed home loans are coming up to expire soon so just wondering if anyone knows any good lenders / brokers for self-employed? We are in Adelaide btw.

We can stay where we are but just need to put up with the higher interest rate so I want to move to a cheaper option.

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  holdenmg on 15/07/2020 - 12:37

  You can use: https://homestart.com.au/home-loans/low-deposit-loans/homest… for re-finance or
  https://www.bernielewis.com.au/

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    pearl2013 on 15/07/2020 - 12:40

    Have tried Bernie which had given me crappy advise and I would have lost my deposit on a house auction… Homestart stuffed up my first home loan application and too I needed to find another lender within the first 3 days cooling off period - so won't go back either of them.

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  dasher86 on 15/07/2020 - 12:45

  +1

  what's the the variable rate that you're going to switch over to when your fixed loan expires?
  Have you tried negotiating with your current bank?

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    pearl2013 on 15/07/2020 - 12:49

    TBH, I am currently with CBA as that's the only bank would lend to us believe it or not.

    Their standard variable rate is 3.85% so I am looking at something lower than that. Athena is the bank I want to go with but they won't look at self-employed like my partner (not in their 4 occupation list).

    • 

      holdenmg on 15/07/2020 - 12:55

      Have you talked with CBA?
      What rate are you looking for, I mean how much less than 3.85%?

      People's Choice is from 3.37% Variable and 3.82% Fixed to Approved Applicants.

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        pearl2013 on 15/07/2020 - 12:59

        UBank is 2.49%, Athena is 2.59%, BOQ is 3.52%

        So thinking anything btw 3% - 3.5%, am I aiming for too much?

        • 

          skinner on 15/07/2020 - 13:03

          @pearl2013: Might depend on the loan amount and your history but you should be able to get under 3% with CBA. They also still have 2.29% fixed rates available.

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  MadgeH on 15/07/2020 - 23:34

  Hi OP

  Generally, most lenders/banks are fine with self employed so it's a matter of having the right banker/broker who can read financials/tax returns to determine your partner's income.

  Most banks will want to see two years tax returns, a couple of others only 1 year. You definitely shouldn't settle for paying a higher rate just because you're self employed.

  I'm a broker and work with plenty of self employed clients so again, you definitely shouldn't put it in the too hard basket.

  Cheers