Individuals who are self-employed or who own their own business have the same dreams and aspirations as those who work at a company and are paid a regular monthly income.  In fact, they usually dream even bigger as they had the confidence to take as big a risk as setting up their own business.  However, when it comes to loans, those who are self-employed often have a hard time getting a loan in the first place.  With all the documentary requirements that banks and lenders ask for before a loan can even be processed, they may find it hard to comply with all the documents asked for, and this would result in their not applying for a loan at all.

The problem is that those who are self-employed especially if their business is new, have little to no documents to present as proof of income, and this proof of earnings is what banks and lenders give priority to.

This does not mean that those who are self employed can no longer get a home loan.  There are ways and means for these business owners to get a loan without having to comply with all the documentary requirements.  This is by applying for loans which do not require any Business Activity Statements (BAS) whatsoever.

The banks however do require an Australian Business Number or ABN and certain criteria such as being GST registered, and the requirement of having a good credit history, and you must have a business or job for at least one day.  This specific requirements are good for loans of up to 60% of the property value.

In order to get loans at higher amounts like 80% or even higher the requirements will necessarily differ.

For more information on how to get a home loan with No BAS it would be best to consult the experts on home loans.  They can give advice and help you apply for home loans which do not require you to submit any Business Activity Statements.  Hence, you no longer need to worry about where to look and find documents that you cannot provide, and rest assured that you have a good chance of having your home loan approved.

In these highly uncertain times, the best way to go maybe is to venture out on your own and be self-employed.  Either you simply offer your services and skills to others on your own terms, or set up a business where you are the boss. The main advantage is that you make your own time, decide on your own pace, dictate and decide on what to work on, and generally if business is good, make more profits.

With respect to home loans and self-employment, you likewise get a mixed bag of benefits.  For those who have just started out their own business, and has no proof of income, often there is no choice but to simply get a low doc loan.  These are loans which require minimal documentary requirements, but generally have higher interest rate.  Because of the numerous documents banks and lenders often require of businesses to reduce their risk, there is usually no way for newly formed businesses to provide the necessary information in order for them to qualify for the other loan types which generally have lower interest.

However, just because you have started a new business and are self-employed does not mean that you have to wait.  Low doc loans may have higher interest rates, but with the number of low doc loans out there on offer, with the right information and documents, you may be able to get a low doc loan that is value for money.  This is because not all banks and lenders think alike.  Your business may be new but if your field of business is one that is booming and the demand easily outstrips the supply, then you may get a good deal on your loan even if you are new.

Talk to the experts and they can provide you with sound advice on what loan should be right for you.  Where you have an established business already, then you could do away with the low doc loans, and get a regular loan by providing the necessary documentation.  Where your business has good consistent profits, and a good track record this should not be a problem at all.  Just bear in mind that with the number of home loan products out there, it should not be very difficult to find yourself a loan that is right for you and your business and meets your budgetary requirements.