Buying your first home is a huge milestone, but if you’re self-employed, you might be wondering if it’s even possible. You’ve probably heard that getting a mortgage is harder when you run your own business, but the truth is—it’s absolutely doable! You just need to know how to prepare.
In our latest episode of The First Home Buyer Program Podcast, I sat down with [Guest’s Name], a commercial finance broker who specializes in helping self-employed clients secure loans. In this two-part series, we dive into everything you need to know about getting a home loan when you work for yourself.
Challenges Self-Employed First Home Buyers Face
Self-employed home buyers often face more scrutiny from lenders because their income isn’t as simple as a regular salary. Instead of just showing payslips, banks will want to see your full financial picture, including business profits, tax returns, and cash flow.
[Guest’s Name] shared that the biggest hurdles self-employed buyers face include:
✅ Needing at least two years of tax returns to prove income
✅ Banks assessing taxable income, not total revenue
✅ Having too many business deductions reducing borrowing power
✅ Inconsistent income streams making lenders nervous
But don’t worry—there are ways to overcome these challenges!
How to Prepare for a Home Loan as a Self-Employed Buyer
If you’re self-employed and planning to buy your first home, preparation is key. Here’s what you need to do:
1. Keep Your Financials in Order
Lenders will want to see at least two years of tax returns, so make sure your books are clean and accurate. If your income has been steadily increasing, that’s a good sign for banks.
2. Reduce Debt & Keep a Healthy Cash Flow
Before applying, try to pay down personal and business debts. Lenders love seeing a good cash flow balance and minimal financial liabilities.
3. Work With the Right Broker
Not all lenders assess self-employed income the same way. Some will consider company profits, while others only look at taxable income. A mortgage broker (like us at 360 Mortgage Solutions) can match you with the right lender.
This was just the beginning of our conversation! In Part 2 of this series, we’ll dive deeper into strategies to make your application stronger, alternative loan options, and how to set yourself up for success.
📢 Listen to the full episode here: – Part 1 – https://api.spreaker.com/v2/episodes/64506659/download.mp3
Part 2 – https://api.spreaker.com/v2/episodes/64506709/download.mp3
Find out more – you can contact Phil here or book a time with the 360 Mortgage Solutions team here