Home Loans
Better Home Loans For Busy Business Owners
We help self-employed business owners source and structure a better home loan, so you can potentially save thousands in interest & fees, and get on with building your business (and your life)
Access to more lenders to get you the right finance for your situation, fast
Loans are structured to protect you, your credit rating
Specialists in helping business owners with unconventional lending circumstances
Complete done-for-you service (including paperwork)
Getting A Home Loan When You Own A Business Can Be Tricky. Which Of These Challenges Are Concerning You Most?
Like many self-employed business owners looking for a home loan, are you…
Too busy to compare dozens of loans from multiple lenders to ensure you get the right option for your situation… and wish you had a trustworthy expert to do all the legwork for you?
Worried about getting declined (and having your credit rating damaged), and wish you had someone to help you get approved the first time?
Concerned your local bank or broker may not have the product options (or expertise) to help you structure your loan for maximum borrowing capacity, and flexibility?
Unsure if your current loan is the right one for you, right now… and want a second opinion to make sure you’re not needlessly overpaying?
And like most self-employed business owners, are you looking for an easier way to get the right home loan, so you can get on with building your business and your life?
Many self-employed business owners have these same questions and concerns. That’s why we developed a no-obligation Consultation where you can get the information you need to get fast approval for a better home loan.
Need a home loan?
Discover the types of home loans available and find the perfect loan for your new home with our comprehensive guide
Are you in the market for a new home? If so, one of the most important steps in the home-buying process is securing a home loan. In 2021 alone, approximately 35% of households in Australia have a mortgage.
If you’re thinking of applying for a home loan, this comprehensive guide will provide you with all the information you need to know about it. From understanding the types of home loans available to navigating the application and approval process, this guide’s got you covered.
Types of home loans
When it comes to home loans, there are several options to choose from. Understanding the different types of home loans can help you determine which one is best suited for your needs
1. Fixed-rate home loans
A fixed-rate home loan is a popular option for many homebuyers. With this type, the interest rate remains unchanged throughout the loan term, providing stability and predictability in your monthly repayments. This means that regardless of any changes in the market, your interest rate and monthly payments will remain constant. You can seek assistance from the best mortgage broker Sydney home owners can recommend, and inquire further about fixed-rate home loans.
The benefits of a fixed-rate home loan include the following:
- Predictable repayments: With a fixed interest rate, you can accurately budget your monthly payments, knowing they won’t change over time.
- Protection from interest rate hikes: If interest rates increase, your fixed-rate loan remains unaffected, providing peace of mind against financial strain.
- Easier planning: With a fixed rate, you can plan your finances with confidence, as you know exactly how much you will need to repay each month.
It’s important to note that while a fixed-rate home loan provides stability, it may not offer the same flexibility as other loan options, especially if you plan to pay off your loan early or make additional repayments.
2. Variable-rate home loans
A variable-rate home loan is another popular choice for homebuyers. With this type of loan, the interest rate fluctuates with market conditions, potentially resulting in changes to your monthly repayments over time. When interest rates go down, your repayments decrease, but if interest rates rise, your repayments will increase.
The advantages of a variable-rate home loan include the following:
- Potential interest rate savings: If your repayments decrease with the decreased interest rates, you can save money on your loan.
- Flexibility: Variable-rate loans often offer more flexible features, such as the ability to redraw funds if needed or make extra repayments.
- Lower upfront costs: Variable-rate loans may have lower establishment fees and ongoing costs compared to fixed-rate loans.
Do be aware that variable-rate loans can be more unpredictable, as they are subject to fluctuations in interest rates. You should be prepared for possible changes in your monthly payments and see that you can afford higher repayments if interest rates rise.
3. Split rate loans
A split home loan is an option that allows you to divide your loan into both fixed and variable portions. This offers a blend of stability and flexibility, giving you the best of both worlds. You can allocate a specific percentage of your loan as fixed rate and the remainder as variable.
Some of the benefits of a split home loan include the following:
- Stability and predictability: The fixed portion of your loan provides repayment stability, allowing you to budget and plan your finances accurately.
- Flexibility and potential savings: The variable portion of your loan offers flexibility, allowing you to take advantage of potential interest rate savings or make extra repayments.
A split home loan can be a suitable option if you’re unsure whether to choose a fixed or variable-rate loan. It provides a level of protection against interest rate fluctuations while still offering flexibility.
4. Interest-only home loans
Interest-only home loans require you to only pay the interest portion of the loan for a certain period, typically 5 to 10 years. During this interest-only period, your repayments will be lower as you are not paying off the principal amount. After this period, the loan is converted into a principal and interest loan, and your repayments will increase as you pay off both the principal and interest.
The benefits of an interest-only home loan include the following:
- Lower repayments in the short term: During the interest-only period, your repayments will be lower, freeing up cash flow for other purposes.
- Potential tax benefits: If it’s a loan for investment property, you may be able to claim the interest payments as tax deductions.
- Flexibility for investors: Interest-only loans can be attractive for property investors who are planning to sell the property before the principal is due.
While this type of home loan may provide short-term financial relief, you will need to make higher repayments once the interest-only period ends. It’s crucial to have a strategy in place to pay off the principal amount and consider the impact on your overall financial goals.
By understanding the different types of home loans in Sydney, you can make an informed decision that aligns with your financial goals and circumstances. Consider your preferences for stability, flexibility, and affordability when choosing the right home loan for you. Don’t hesitate to seek advice from Pro Options Sydney mortgage brokers to help you navigate through the complexities of these loan options.
How to finance your home loan when you’re self-employed
Being self-employed offers many benefits, such as flexibility and independence, but it can present unique challenges when it comes to securing a home loan. Lenders typically have stricter requirements for a home loan for self-employed individuals due to the variable income nature of their work. However, with careful preparation and documentation, self-employed individuals can still obtain a home loan with competitive terms. Here are some essential steps and tips to finance your home loan successfully as a self-employed individual:
1. Organise your financial documents
Lenders will scrutinise your financial records to assess your income stability and ability to repay the loan. Gather the following documents:
- Tax returns: Provide your personal and business tax returns for the past two to three years to demonstrate your income history.
- Financial statements: Include profit and loss statements and balance sheets for your business.
- Bank statements: Furnish your personal and business bank statements to verify your cash flow.
- Notice of assessments: Submit your latest Notice of Assessment from the Australian Taxation Office (ATO).
Meticulously organizing and presenting your financial documents will provide lenders with a clear and comprehensive view of your income history and financial stability.
2. Show consistent income
Lenders prefer steady income streams for self-employed borrowers. If your income fluctuates, provide evidence of consistent earnings over the past few years. A stable income history can boost your credibility and improve your loan prospects.
3. Minimise deductions
While maximising tax deductions is a common practice for self-employed individuals, it may not work in your favour when applying for a home loan. Reducing your taxable income by claiming numerous deductions might show a lower earning capacity to lenders. Consider deferring some deductions or consulting with an accountant to optimise your financial situation for the loan application.
4. Demonstrate savings and equity
Having a substantial savings history and a sizable deposit can strengthen your home loan application. A larger deposit reduces the lender’s risk and may lead to better loan terms. Additionally, if you already own a property, using the equity as a deposit for the new home can be advantageous.
5. Keep personal and business finances separate
Keep separate bank accounts for business and personal finances to provide a clear picture of your income and expenses. This separation can help simplify the loan assessment process and avoid any confusion about your financial standing.
6. Consider low-doc home loans
If you have difficulty providing traditional documentation, explore low-doc home loan options designed for self-employed borrowers. Low-doc loans typically require fewer documents but might come with stricter lending criteria and higher interest rates.
7. Build a strong credit history
Maintaining a good credit history is essential for all borrowers, including the self-employed. Check your credit report regularly and ensure timely payments on credit cards and existing loans. A solid credit history can improve your access to the best home loans Sydney lenders can offer. It can also increase your chances of approval, and even potentially result in more favourable interest rates.
8. Seek professional advice
Navigating the home loan process as a self-employed individual can be complex. Consider seeking advice from a mortgage broker with experience in dealing with self-employed borrowers.
Pro Options home loan brokers Sydney can guide you through the application process, help you find suitable loan options, and increase your chances of securing a favourable home loan.
The bottom line
Buying a home and securing the right home loan is a significant financial decision. It’s crucial to research, compare, and seek professional advice from home loan experts Sydney if needed. Understanding the types of home loans, eligibility criteria, and repayment strategies will empower you to make informed choices. Remember to consider costs, avoid common mistakes, and always review your financial situation regularly to ensure your home loan remains suitable for your needs. Happy house hunting!
How We Help Business Owners Get A Better Home Loan
Over the past 13 years we’ve helped hundreds of self-employed business owners get home loans with better interest rates, lower fees, and more flexible conditions.
The Right Loan For Your Situation
Unlike other banks and brokers that most commonly cater for wage earners (not business owners), and are restricted to selling their own or brand-approved lending products (whether they are right for you or not), we specialise in working with business owners and have access to hundreds of loan options from dozens of lenders to ensure you get the right loan for your situation.
We Don’t Just Find You a Loan
While other banks and brokers merely find you a loan, we look at your whole financial situation and help you structure your finance to protect your assets.
We Even Do The Paperwork
Once we find the right home loan, we pre-fill all the forms to save you time and maximise your approval success. And we review everything each year to ensure you’ve always got the right home loan for you.
Testimonials
Other Self-Employed Business Owners and Individuals We’ve Helped
If you’ve ever tried to get a loan from your bank, you’ll know how hard (and often disappointing) it can be. But it doesn’t have to be that way. Take a look at what some of our clients say about how we helped them get finance for their home, investments, and business:
The team at Pro Options has more than 48 years of combined experience helping self-employed business owners and other indiviuals get fast approval for better finance. Here’s what some of them say about their results and experience with our team:
A Huge Thank You To Alex From Our Mortgage Options!!
A huge thank-you to Alex from Our Mortgage Options!! I came across Alex about 18 months ago when my partner and I were trying to get into the housing market as first home buyers. Thank god we found Alex and had him on board to help us with our journey. He guided us all the way from getting our pre approval to buy our land and house making everything so easy and stress free. He found us a great loan and bank, explaining everything we needed to know in plain english. He managed everything related to our bank including progress payments and inspections with his communications always prompt causing no delays. Thank-you Alex for helping us to get our first home:)
I have been working with Alex for 12 years and he has been wonderful to deal with, his knowledge and client focus have saved me thousands of dollars. Highly recommended!
Alex and his team are top notch brokers and always goes beyond the call of duty to help clients, I would recommend his service to anyone needing finance.
My Investment Refinance Journey Paid Huge Dividends!!
“As an experienced investor who has required finance for property purchases whether they be for land, units, houses or for construction both in NSW or interstate, I’m always after a better deal. Ultimately the better the deal, the more dollars I can drive back into further investments to achieve my financial freedom dreams and fund my lifestyle that includes a comfortable family home, private school fees for my children, numerous overseas trips, and stepping ever closer to leaving the rat race behind. Recently in this strange Covid-19 world, Alex at Our Mortgage Options managed to refinance my exisiting mortgages and secure me additional construction loan finance that has now paid off handsomely. I’m basically at minimum now $500 a month (or $6000 a year) better off with reduced interest rate payments meaning that the next project after this new property is built, is not that far away. The refinance journey due to financial institution compliance can sometimes be excruciatingly long and frustrating but with Alex in your corner, well worth it!!”
Alex was extremely helpful throughout our 1st home purchase. He made the process smooth and hassle free. He is well versed in his field and we would recommend his professionalism to anyone who is needing the guidance that he offered in serving us.
Great mortgage brokers. These guys will give you great advice in terms of the best home loan product. Speak to these guys before going to your bank. You won't regret it.
8 Ways We Help Business Owners
Get A Better Home Loan
Comparing banks and mortgage brokers can be confusing (and time-consuming). But it’s a critical exercise because choosing the right lender can save you thousands in interest & fees, and get you more money, faster. While the wrong lender could…
- Jeopardise your dream property with long delays
- Cause you to needlessly overpay in interest and fees
- Expose your current assets to unnecessary risk
- And damage your credit rating and future finance opportunities
Here are some of the things we do differently to help you avoid these disaster scenarios and get the right home loan — fast:
Specialists In Small Business and Unique Lending Situations
Business owners who fall outside the rigid lending criteria of banks can find it difficult to get finance. We specialise in helping people who have unique situations including self-employed business owners and those who may have been knocked back for finance in the past.
Potentially Save Thousands With More Lending Options
While most banks and brokers are limited by their in-house or brand-approved loans (whether they are right for you or not), we analyse dozens of loan options from our vast network of lenders to help you potentially save thousands in interest and fees.
Holistic Advice To Help Maximise Borrowing Capacity
Our holistic approach considers your entire financial structure (not just your loan) to help maximise your borrowing capacity, and protect your credit rating.
Solely Serving You And Your Interests
Large lenders are naturally accountable to shareholders and corporate interests (and recommend loans accordingly). We serve you and your interests alone.
Qualifications And Experience
Unlike a mortgage broker, who has to undertake a Diploma of Mortgage Management by law, did you know bank staff (while they may be required to undertake inhouse training) do not need to be formally qualified in finance?
Make no mistake, our team members have the formal qualifications, experience, and ongoing professional development to help business owners achieve their financial outcomes.
Regular Reviews Ensure You Always Have The Best Loans
When did your bank last call to tell you they could give you a better deal on your loans or savings accounts? We will proactively analyse your loan at least once a year (more often if interest rates change) to make sure you’ve always got the right loan for your situation.
Complete Done For You Service
We compare dozens of loans, negotiate the rate with lenders, prepare and package your application for fast approval, and manage the whole process to ensure no mistakes are made. And it won’t cost you a single cent.
Advice Specific To Your Situation
Whether you’re looking for a new home or business loan, trying to save on your existing loans, consolidating multiple loans, or simply want advice for the future, we invite you for a Consultation where we will share our advice stemming from over 48 combined years of experience.
Our Six ‘A’ System To Help You
Get The Right Finance -- Fast
ACQUAINTANCE:
We take time to understand your needs and financial situation so we can source and structure the right loan to save you interest & fees while protecting your assets
ANALYSIS:
We compare loans from dozens of lenders and negotiate rates, fees, and conditions on your behalf – all at no cost
ALTERNATIVES:
We present you with several options, explain all the details, and give you our professional recommendation
APPLICATION:
We pre-fill and package your application (saving you hours of admin) for maximum approval success
APPROVAL:
We follow up to ensure everything goes smoothly (with no mistakes) right through to settlement day
ACTIVE CARE:
We regularly review everything to ensure you can be confident you have the right loan for your situation.
Your Next Step To Get The Right Loan for Your Situation – Fast
The quickest and easiest way to see how to get the right home loan is with a no-obligation Complimentary Consultation during which:
- You’ll get a firm idea of how much you can borrow and what it will cost in terms of interest, fees, and repayments (so you can confidently plan and even start looking at homes)
- You’ll learn how to avoid common mistakes that can lead to failed applications and corresponding credit damage (and things you need to do now to ensure your loan application is successful)
- You’ll get an overview of the different types of home loans and finance structures (and what loans are likely to give you the interest, fees and flexibility you’re looking for)
- You’ll explore ways our team can help you get better home loan finance so you can potentially save thousands in interest and fees, and get on with building your business (and your life)
Please be assured this consultation is not a sales presentation in disguise. On the contrary, you will receive expert advice specific to your situation.
Naturally, we’d love to help you arrange your finance, but you can certainly take our advice and try to implement it yourself. In any case, you have nothing to lose with a no-obligation complimentary consultation.
