Loans for self employed

[dormouse]

Hi!
I am just wondering if anyone can recommend a bank or credit union that might be able to help us to refinance our mortgage.

My husband is self employed & has been since Jan 05. I haven't been working since July 05 & have no intention of going back any time in the near future. DH earns good money but because he hasn't been in business very long, our tax returns don't show that. We can afford to borrow more money, we just can't prove it.
We planned on waiting until we could show financials from 2 years but we are getting desperate!

Our bathroom has always needed a make over, but it is really going to ruins now!Nearly all the taps are broken & the vanity is rotten now due to leaks! I would love a bathtub too as Ava is getting too big for the baby bath & to shower with us.

We either want to refinance or just take out a personal loan to cover the costs of a bathroom reno.

Has anyone been in a similar situation & borrowed money?

Thanks in advance!

[cosmic]

Hi Lindy,

My husband and I are both self-employed. I have been for 2.5years now but he only started his business about a year ago so when we wanted to buy our house, we were really worried as we were in the same position (we couldn't have got a loan based on my business alone).

If you want to refinance, you can try a low-doc loan but they are usually a slightly higher interest rate and you usually need 20% deposit so if you have some equity in your house, you might be ok. Their terms vary, but without tax returns to prove your income they are probably your only option. Getting a personal loan might be easier, but will obviously be a higher interest rate than using your equity and tying it into your home loan.

My advice would be to see a good mortgage broker - they know all the options and can definitely help you get the best deal depending on your circumstances. We have a financial planner with their own in-house private bankers so they did the whole thing for us and took all the stress out of it.. and here we are in our new house! :D

[dormouse]

Thanks Cosmic!

I will look into a mortgage broker. I am a bit wary due to bad experiences with mortgage brokers in the past, but will try a couple of other agencies & see what they can do for us.
I appreciate your reply!

[Clio]

although I am no expert I would have to agree with cosmic and say that it sounds as though a low doc loan is the way to go. We are looking at buying an investment property in Brisbane and as we live overseas thought a low doc loan may be the way to go but have found out that is not our only option.

If you are unsure about mortgage brokers then maybe you should shop around and see a couple- see who works best for you.

Good luck and I hope you find a loan suitable for you!!!!:)