Self employment and change in career

[No2WhereAreYou]

Hello
My husband works full time and I work part time (employed) and I also am self employed.
Next year I am looking to become self employed full time. When we talked to a home loan consultant earlier in the year, he said as I only had one year tax return on self employment the best thing would be a low doc home loan. This meant we would have to go from paying around 7.45% to 8.15%. Why is this when my husband is not self employed?

Also, If self employment is going to be an issue in us getting our first home loan, I would want to work full time, but in a different industry. How long do I need to be in the industry before we can apply?

Thankyou :)

[andie_pandie]

This is a very good question. First of all a loan consultant should never tell you what to do they can only give you options.

Generally, when you are self employed most banks want you to have two years self employed figures so they can get a good average on your current earnings and potential earnings.

Yes your husbands full income can be taken into consideration, including any of your part time income, (casual is different as there are different amounts that can be used), and any family allowance that you may be entitled to. Most banks will not include one years only figures on self employed unless you have been in the same industry prior then they may look at it.


With Low Docs and No Doc Loans, please be careful with these, as indicated they are normally at a higher rate due to the fact that they are a higher risk product. You are also signing a declaration that this is what you do earn and can be used if you default on your loan.

Tonight in 7 news there was also a report on borrowers being cautious on these types of loans. I personally have never sold one of these loans and try to avoid them as I believe there are far better products out there. The last thing I would like is for my borrowers to borrow outside of there means, at a higher than normal rate.

If you need more info, please PM me I am happy to have a closer look at your situation.

Have a good night.


Andrea