How much can you borrow?

A finance broker acts as an intermediary between borrowers and lenders, helping you find suitable mortgage solutions without the need to approach multiple banks directly. At Shoreside Finance, we specialise in working with self-employed individuals and professionals who often face unique challenges when seeking home loans. We understand the complexities of non-traditional income structures and have established relationships with lenders who recognise the value of self-employed borrowers. Our expertise lies in presenting your financial position in the most favourable light possible, ensuring lenders understand your true earning capacity and financial stability.

Various professional occupations may qualify for lender mortgage insurance waivers, including medical practitioners, dentists, veterinarians, pharmacists, optometrists, chartered accountants, solicitors, barristers, engineers, and architects. However, eligibility criteria vary between lenders, and some may have specific requirements regarding qualifications, experience, or income levels. Self-employed professionals in these fields may also qualify, though additional documentation is typically required to demonstrate income stability and business viability. At Shoreside Finance, we maintain current knowledge of each lender's specific criteria and can advise which options are available based on your professional background and circumstances.

When applying for a home loan, you should budget for various costs including property valuation fees, legal fees, stamp duty, and potential application fees depending on the lender chosen. As a finance broker, Shoreside Finance typically receives commission from lenders rather than charging fees directly to clients, though it's important to discuss fee structures during your initial consultation. You may also want to budget for professional services such as building inspections, accountant fees for preparing financial statements, and mortgage insurance if applicable. We provide transparent disclosure of all costs involved in your loan process upfront, ensuring you understand exactly what you'll need to pay and when. This allows you to budget accurately and avoid any unexpected expenses during your property purchase journey.

The timeline for self-employed mortgage applications can vary depending on the complexity of your financial situation and the lender's current processing times. Generally, self-employed applications take longer than standard employment applications due to the additional documentation required and more detailed assessment process. From initial application to settlement, the process typically takes between 6 to 10 weeks, though this can extend if additional information is requested. At Shoreside Finance, we work proactively to prepare your application thoroughly from the outset, liaising with lenders throughout the process to identify and address any potential issues early. This approach helps minimise delays and keeps your application moving forward efficiently.

Lenders assess self-employed borrowers' serviceability by examining your net business income after deducting business expenses, tax obligations, and other commitments. They typically use your average net income over two years, though some may weight recent performance more heavily. Lenders also consider factors such as business consistency, industry stability, your experience in the field, and overall financial management. Some expenses that reduce your taxable income (like depreciation) may be added back to improve your serviceability assessment. At Shoreside Finance, we understand how different lenders calculate serviceability for self-employed borrowers and can structure your application to present your repayment capacity in the most favourable light while ensuring all information remains accurate and verifiable.

Securing a home loan with a new business can be challenging, but it's not impossible with the right approach and lender selection. Most traditional lenders prefer to see at least two years of business operation and tax returns, but some specialty lenders may consider applications from businesses operating for 12 months or even less in certain circumstances. Factors that can strengthen your application include strong personal credit history, substantial deposit, relevant industry experience, and solid business projections. Professional qualifications and previous employment history in your field of business can also support your application. We specialise in identifying lenders who are more flexible with newer businesses and can present your application in the most compelling way possible.

While not always mandatory, having an accountant prepare your financial statements significantly strengthens your mortgage application as a self-employed borrower. Many lenders prefer or require accountant-prepared documents because they provide greater confidence in the accuracy and completeness of your financial information. An accountant can also help structure your business finances in ways that may improve your borrowing capacity and ensure your tax returns accurately reflect your true earning capacity. If you don't currently use an accountant, we can recommend professionals who understand mortgage lending requirements and can prepare your financial statements appropriately. The investment in professional accounting services often pays for itself through improved loan terms or faster approval times.

Lender mortgage insurance waiver policies allow eligible borrowers to avoid paying lender's mortgage insurance even when borrowing more than 80% of a property's value. Typically, borrowers need a 20% deposit to avoid this additional cost, but certain professionals and self-employed individuals may qualify for waivers based on their occupation or financial profile. These policies can save you thousands of dollars in insurance premiums whilst allowing you to enter the property market sooner with a smaller deposit. At Shoreside Finance, we identify which lenders offer these waivers for your specific circumstances and guide you through the application process to maximise your chances of approval.

Income fluctuation is common among self-employed individuals and professionals, and experienced lenders understand this reality. Most lenders will assess your average income over two years, though some may look at longer periods or focus more heavily on recent performance if it shows positive trends. The key is demonstrating that fluctuations are manageable within your overall financial capacity and don't indicate declining business performance. We help present your income story clearly, highlighting seasonal patterns, business growth, or one-off events that may have impacted specific periods. Additionally, we can identify lenders who are more understanding of variable income patterns and structure your application to emphasise your overall financial stability and repayment capacity.

Self-employed borrowers typically need to provide more comprehensive documentation than traditional employees to demonstrate their income and financial stability. This usually includes two years of tax returns, business activity statements, profit and loss statements, and accountant-prepared financial statements. You may also need to provide bank statements showing business and personal accounts, evidence of business registration, and details of any business assets or liabilities. Some lenders may require additional documentation such as contracts for ongoing work or professional indemnity insurance. We'll provide you with a complete checklist tailored to your specific situation and the lender's requirements to ensure your application proceeds smoothly.