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LENDING FOR SELF-EMPLOYED
Being self-employed has many benefits, however, it can make it trickier to secure finance.
The following factors are what contribute mainly to the complexity of a self-employed loan application:
- proof of income
Here at Pathway Finance, we pride ourselves on being "experts in self-employed", having secured countless loans for self-employed clients over the years. We're able to swiftly work through the complex nature of these deals including financials, and business and asset structures, and have detailed more about what to consider, being self-employed, in our blog articles. If in doubt, reach out!
How much can I afford to borrow for my first home?The amount you can afford to borrow for your first home depends on various factors, including your income, expenses, savings and the lending criteria of financial institutions. It is recommended to consult with a Mortgage Broker or use online calculators to get an estimate of your borrowing capacity based on your financial situation.
What is the process of getting a mortgage and how do I qualify?The process of getting a mortgage involves several steps. First, you need to gather your financial documents, such as income statements and expenses. Then, you can shop around for lenders, compare their offers and apply for a mortgage. Preferably, you can utilise a Mortgage Broker who along with their industry knowledge will guide you through the lending process and advise on the best lending solution for you as this can often be daunting for first home buyers. To qualify for a mortgage, lenders typically assess factors such as your credit score, income, employment history, and debt-to-income ratio to determine your eligibility and interest rate. A Mortgage Broker can ensure all these details are satisfied prior to lodging an application on your behalf. Here at Pathway Finance, we're here to guide you every step of the way to owning your first home. Reach out anytime!
What are the additional costs involved in buying a home?When buying a home you may encounter additional costs beyond the purchase price. These can include stamp duty (a tax on property transactions), legal fees for conveyancing services, and inspection costs for surveys, building inspections, and pest inspections. It is advisable to budget for these expenses to ensure a smooth and well-informed home buying process. Use our Property Fee Calculator to learn more about costs based on your loan scenario.
What government assistance or programs are available for first home buyers?In Australia, there are several government assistance programs aimed at helping first-time home buyers. The most notable is the First Home Owner Grant (FHOG) - for purchases in South Australia - which provides a one-time grant to eligible individuals or couples purchasing their first home. Additionally, there are state-specific stamp duty concessions and the First Home Buyer Guarantee Scheme (FHBG). As Mortgage Broker, we are able to advise on eligibility criteria and benefits of these programs.
What factors should I consider when choosing a neighborhood, suburb or location for my first home?When choosing a neighborhood, suburb or location for your first home, several factors should be considered. These include proximity to essential amenities like schools, hospitals, and grocery stores, transportation options and commuting distance to work, safety and crime rates, access to recreational facilities, and the overall vibe and community feel of the area. It's important to evaluate your personal preferences and priorities to find a neighborhood that aligns with your lifestyle and future needs.