Self-employed loans

Understanding self-employed home loans

Unlike traditional employees who receive a regular paycheck, your income may fluctuate, making it harder to meet the standard lending requirements.

Documentation

Self-employed borrowers typically need to provide more extensive documentation than regular employees. Lenders may request several years' worth of tax returns, financial statements, and business-related documents to verify your income stability.

Income

Lenders often assess your income differently as a self-employed borrower. They may consider your net income after deducting business expenses rather than the gross income stated in your tax returns.

Loan eligibility

Loan approval depends on various factors, including credit score, debt-to-income ratio, and the size of your deposit. Self-employed individuals may find it beneficial to have a higher credit score and a larger deposit to improve their loan eligibility.