The Business Owners’ Guide to Home Loans

November 2, 2016 - Posted in Home Loans, Investment Loans, Investment property

For business owners who are first home buyers, preparing documents and paperwork can be an overwhelming process. Financially stable borrowers who are self-employed are often surprised by the process involved in applying for a home loan.

Before you contact a mortgage broker, have the following documents ready to review. This will give you an accurate picture of your financial position and the amount you and your business can comfortably repay, whether it’s for a first home or an investment property.

Tax Returns

To ensure that you get the best rates, you will need to hand in your last two tax returns. These include returns that are related to your business expenses along with any personal tax returns.

Verifying income for business owners can be complex. It’s always preferable to have your tax returns and related forms prepared on time to avoid unexpected consequences.

Profit-and-Loss Statement

Profit and Loss Statements are also required by the lenders to verify income and expenses of the business. This paperwork must be prepared by someone other than the borrower, like an accountant.  You’ll also need to hand in any related balance sheets for every profit/loss statement you submit.

Balance Sheet

A balance sheet provides the prospective lender with a view of your assets and ongoing expenditures. Lenders use a balance sheet to determine your financial status and whether or not the loan should be approved. They will also use balance sheets to determine the best kind of loan and rate for your situation.

Lenders may also need to contact your accountant to verify or clarify claims made in any documentation presented. Contacting a mortgage broker as early as possible will ensure that you’re ready to purchase when you find the right property.

Meet Multi Choice Home Loans

At Multi Choice Home Loans, we are here to help you with your first home purchase. Whether you’re a sole trader or a small business owner, we will work with you to find the best solutions.

We are one of the best mortgage brokers in Queensland and we are backed by the Australian Finance Group, the country’s largest broker network. Trust us to offer customised service to you, wherever you are in Australia.

Our head office is located in Brisbane and we also have branches on the Sunshine Coast, in Beenleigh and in Hervey Bay. Our team combines extensive resources with a personalised approach to help every kind of business owner.

Contact Us Today!

Getting in touch with Multi Choice Home Loans is easy. Simply call us on 1300 36 36 99 or use our online form.  One of our friendly local brokers will be in touch with you as soon as possible.