How Do Self-Employed Individuals Secure a Good Home Loan?
Applying for a home loan is pretty straightforward for most people in New Zealand. However, it can be stressful and complex to apply for a home loan for those who are self-employed, running their own business, or working as a freelancer. But that doesn't imply it is unattainable; just it takes a little more work. Why Do Banks Usually Reject Self-Employed People? When it comes to a home loan, financial stability is one of the crucial factors that lenders consider. Since a mortgage involves a lot of money, banks need to be assertive that you're in a good position to repay that debt. If you’re an employee, you’ll receive the same amount of money each month (with bonuses, etc.). It is easier for banks to picture your income and lend accordingly. But as a self-employed person, your income can vary each month. Consequently, banks are often hesitant to lend to self-employed individuals. How Can a Mortgage Broker Help? If you are a self-employed borrower, getting ...