If you run your own business, you probably enjoy some important freedom – and face some additional challenges. When it comes to applications for home finance, lenders may ask you to jump through extra hoops to ensure you meet their lending criteria and it’s important to understand that and be prepared – rather than assume you’ll get an easy answer as soon as you lodge a loan application.

Loans for small business owners

By talking to a mortgage broker who works with lenders that cater products to small business owner borrowers, you can find out accurate information about what you need to provide for a successful loan application.

And the first important step? Talking to your bookkeeper or accountant to make sure you know your numbers.

Understand your income – and your borrowing capacity

Talking to your finance broker will help determine what taxable income level you need to apply for credit and once that amount has been established, your eligibility for finance will depend on your credit history and your ability to prove that your income is what you say it is.

Understanding how your business profitability and commitments, and any personal guarantees you may have provided, could impact on your individual borrowing potential.

Clean up your finances

Approval for any loan application relies on making yourself appear as solid as possible, and to help boost your credit rating, you can start paying special attention to household bills and paying any other loans on time (credit cards and any other personal loans) to help leave a positive footprint of sound money management.

The financial performance of your business can also have an adverse (or positive) effect on your application so it is important to ensure all financial activities are under control. It’s also important to remember that a poor business history can have an adverse impact on you personally.

It’s never too late to budget

The more you put aside each week/fortnight or month, the more you’ll be able to save. When it comes to buying a property, it’s important to have at least 20% of the purchase price as a deposit. If you do have 20%, you will avoid the additional cost of loan mortgage insurance.

The less you have to pay out each month, the more money you’ll have to spend on other things – including bigger repayments on your mortgage.

If you are considering taking funds out of the business to fund your personal or business purchase you need to be alert to the possible consequences should things don’t pan out the way you expected. Questions such as cash flow and the financial sustainability of the business need to be considered.

Of course, it’s critical that you talk about your hopes to pay down your home loan faster with your mortgage broker before you settle on the loan product – some mortgages offer no benefits for repaying your home loan faster, so if a plan to make additional payments is a clear strategy for your home-ownership and property investment goals, it’s important to discuss that with your mortgage broker before you apply for your loan.

The reality is that self-employment can have a direct impact on your loan options but it’s important to remember that there are many other options available.

Applying for a home loan – or any major finance – should be something that you plan over the long-term and by preparing yourself for your loan application, you can start making the right moves now to boost your chances – and maximise your borrowing capacity. Good luck with your application – and happy house-hunting!

If you need advice for a home loanbusiness or commercial loanself-managed super fund loan, or an investment home loan, speak to a broker at Lending Specialists. We have a wealth of experience under our belt and a robust network to connect you to the right industry professional for the loan you need.

I worked alongside Barry for several years and what has always struck me most is the warmth he has for people. Barry makes his clients feel at ease through great listening, simple language free of jargon and the most suitable broking outcomes.


Having sent several clients to Barry for their mortgage broking needs, I’ve always received excellent client feedback following these introductions. I will have no hesitation in recommending him to other clients in the future

 

Barry is an excellent mortgage broker that specialises in getting finance for Small business owners. Friendly and professional I frequently refer my clients to Barry & Lending specialists.

 

 

Whether you’re buying a home to live in, or a property to rent out as an investment, knowing what insurance to have in place ensures your assets are protected. But how can you shop around for the best possible insurance deal to suit your needs? These tips will help – and remember to always check the fine print!

Most Australians understand the importance of appropriate insurance for their vehicles but when it comes to protecting their most valuable asset – their income and their health – it’s estimated that less than one third of Australians take the steps to put the right insurance in place.

How would unexpected illness or injury impact your family?

When it comes to creating a sensible financial plan for you and your family, insurance is one of those things that too many people ignore. Yet, all the saving and property investment strategies in the world won’t save you if unexpected illness or injury leaves you unable to earn an income to service your home loans.

To decide what level of personal risk insurance is right for your circumstances, ask yourself these questions:

4 Main Insurance Types

Life insurance – in the event of your death, this provides a lump sum payment to your family.

Total and permanent disablement (TPD) – this lump sum payment is if you become totally and permanently disabled and cannot work again – either in your own occupation, or in ‘any occupation’.

Income protection – this monthly benefit can cover up to
75 per cent of your income, if illness or injury means you can’t work for an extended period of time.

Trauma insurance – a lump sum payment to help you recover from a trauma or crisis (including cancer, stroke or heart attack, for example).

Many people already have these insurances within their super. It is important to check your policy to see if you are covered – and read the fine print to see if the cover is adequate. Basic insurance cover within super funds is rarely personalised to suit your individual circumstances and may not provide the financial support you really need.

Top Insurance Tip

If your insurance is cheap, it is almost certainly inadequate, or may have too many clauses that making a successful claim will be challenging. If you’re planning a major purchase, or need to know the ones you’ve already made are properly protected, ask a specialist insurance broker to check your existing policies to see if you can access a better deal.

If you need advice for a home loanbusiness or commercial loanself-managed super fund loan, or an investment home loan, speak to a broker at Lending Specialists. We have a wealth of experience under our belt and a robust network to connect you to the right industry professional for the loan you need.

I would like to take this opportunity to thank you both for your assistance with getting the re-finance for me. 

 

I have spoken to Jenny  Beyond Bank who has been very helpful and supportive and this stage it seems all is in order. Tanya Hart has been fantastic trying to find a better deal with life insurance.

Once again thank you.