Here is how you can help self-employed clients secure finance
When a self-employed person enquires about whether you can help with a home loan, there is no need to put them into the ‘too hard’ basket.
The exceptional circumstances these prospective borrowers sometimes present may be resolved by using Resimac’s range of solutions. Let’s look at how you can take advantage of these.
One of the first questions to ask a self-employed client is whether they can provide proof of income.
Running your own business can be tough and there may have been periods where the business earned little revenue.
The proof of income question will determine which Resimac Specialist product the client is potentially eligible for – Full Doc or Alt Doc.
Resimac Specialist products provide home loans that offer debt consolidation, offset accounts and other features for borrowers who do not fit traditional lending criteria, such as the self-employed.
The question to ask your client is whether they are able to provide:
- the past two years’ certified tax returns
- company financial statements
- tax assessment notices (business and personal tax returns where applicable)
If the client can, he/she may be eligible for Specialist Full Doc.
Specialist Full Doc offers lower variable rates and fees to borrowers than its Alt Doc peer.
Specialist Full Doc also allows unlimited cash out* for any worthwhile purpose. A worthwhile purpose may include non-structural home improvement, buying an additional property, buying a car.
The Resimac team knows from experience that not all prospective borrowers will be able to provide two years of financials.
Indeed some prospective self-employed borrowers without two years of financials contact Resimac for this reason.
Resimac offers the Specialist Alt Doc product which takes into consideration different types of circumstances.
A self-employed client may be eligible for Specialist Alt Doc if he/she can provide:
- declaration of financial status (signed by each applicant and guarantor, where applicable)
As well as one of the following:
- accountant’s letter
- three months of business bank statements
- six months of lodged ATO Business Activity Statements
Should your client’s application for a Resimac Specialist home loan be approved, this need not be your final service to them.
You can help such a client improve their financial position so they can later move to a lower rate Prime product.
Working with the client on this opportunity helps retain their business, and may help you settle a Prime home loan for them.
Have more questions about Specialist products? Talk to a BDM or Relationship Manager in your state or territory.
* Based on 80% LVR. See product specifications for details.