Self Employed Loans: Document Tips

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Self Employed Loans: What Documents You’ll Need

When you’re self-employed, applying for home loans seems intimidating as you don’t have official proof of income. It doesn’t have to. Most Australian banks are happy to lend to non-traditional workers, you just have to know the process.

To prove your eligibility, you’ll need to bring different documents with you than those who work traditional 9-5’s. That’s the easiest option, but you can apply for an alt-doc loan if you can’t provide them. See the specifics below.

The Documents

Like we discussed above, the banks need some sort of proof of your income. They’ll accept it with any or all of the following documents (it depends on the bank). The bank needs to know that you aren’t lying about your income so they can make an informed decision on your loan. If they feel like your finances are a risk, you will get a higher rate or could even get denied.

Most institutions ask for a few of the ones below.

Official Tax Returns

• Most banks will require the last two years of your official tax returns. This is the best way for them to prove you make what you say you do.

Financial Statements

• If you have any documentation from your bank that proves profits/losses, they’re worth bringing. Even if the bank doesn’t ask for them specifically, have them in your bag at the application meeting. It’s better to be over-prepared than under-Prepared.

Recent Bank Statements

• You’ll need these statements from all relevant accounts. That includes business, savings, and checkings. If you’re applying for a loan together, make sure your joint and individual account statements make it to the bank. The more cooperative you’re willing to be, the more likely you’ll get the money.

Company Specific Information

• The number one thing banks will ask for is your company’s tax ID. If you have any accounts registered in your businesses name, bring their information as well. You really want to put all your cards on the table.

Personal Identification

Be prepared to bring all precious identifying documents with you to the bank. This includes but isn’t limited to your drivers license, passport or proof of age card. If you’ve recently changed your name, bring old documents and your name change confirmation as well.

Alt-Doc Loans

If you can’t produce the documents that your bank is asking for, you can apply for a special “alt-doc” loan. The following documents are required if upon application of this loan:

6 months of Business activity statements

6 months of Business account statements

Accountant’s letter

Confirmation of GST registration

Latest ATO Notice of Assessment

There are many different variables that could arise about self employed loans. So if you need assitance in securing your loan, contact an Alchemy Finance broker.

Our Panel Of Lenders

At Alchemy Lifestyle Group, we have a wide range of specialist lenders that can help you achieve your financial goals.