Self employed loans
Finch Mortgages helps self-employed customers secure home loans by offering tailored solutions that consider their unique income structures and financial circumstances.
What’s involved with a self employed home loan
A self‑employed home loan is a mortgage specifically structured for individuals—such as contractors, freelancers, directors, or small business owners—who don’t receive regular payslips, requiring lenders to assess income through business proof rather than salary. These borrowers typically need to provide two years of tax‑filed financial statements (including profit & loss, balance sheet, and cash flow), GST returns if registered, and bank statements to demonstrate consistent income and repayment capacity. Because documentation can be more complex than for PAYE employees and income may fluctuate, a mortgage advisor plays a key role in guiding self‑employed clients through organizing their financial records, choosing suitable lenders (including alternative or “Alt‑Doc” lenders for newer businesses), and presenting a well‑packaged application that accurately reflects their financial health—helping to simplify the process and improve approval chances.
Key Features
- Tailored Loan Solutions – Advisors match clients with lenders offering products designed for variable income and alternative documentation.
- Expert Documentation Guidance – They help organize financial statements, tax returns, and bank records to meet lender requirements.
- Access to Specialist Lenders – Advisors often have relationships with lenders who understand self-employed income structures and offer flexible criteria.
- Application Packaging & Negotiation – They present the application in the best possible light and negotiate terms to improve approval chances.
Considerations
- Income Verification Complexity – Self-employed borrowers may need two years of financials, which can delay the process if records aren’t ready.
- Higher Interest Rates or Fees – Some lenders charge more for perceived risk, so advisors must weigh cost vs. flexibility.
- Cash Flow Fluctuations – Advisors need to ensure the loan structure accommodates seasonal or irregular income.
- Regulatory & Compliance Requirements – Advisors must stay updated on New Zealand lending rules and responsible lending obligations.
Role of an Adviser
Helping our self employed customers navigate the journey
A mortgage adviser plays a crucial role in helping self-employed customers navigate the unique challenges of securing a home loan by providing expertise, guidance, and access to tailored solutions.
- Assessing Financial Position – Advisers review income, expenses, and business performance to determine borrowing capacity.
- Guiding Documentation Requirements – They help clients prepare tax returns, financial statements, and bank records to meet lender criteria.
- Matching with Suitable Lenders – Advisers identify lenders who offer flexible options for self-employed borrowers, including alternative documentation loans.
- Negotiating and Structuring the Loan – They negotiate competitive rates and terms while ensuring the loan structure suits variable income patterns.
Ready to take the next step?
Contact us today and start your finance journey with confidence.
