Browse Forums Home Finance 1 Apr 06, 2012 12:23 pm Okay, so my husband and I want to buy or build a house to move into early next year as our current rental is being demolished once our lease is up (February 2013), and we really don't want to move into another rental seeing as we're just about ready to buy anyway. We are currently saving up money for a deposit, but we'll only be able to do a 10% deposit. We are considering both buying and building, but we would LOVE to build; however, there are things that make this difficult, the main one being the fact that I am self-employed and we wouldn't be able to loan on my husband's salary alone. Now, I talked to Westpac last year when we first started talking about buying to see what our options were, and I was told that I would have had to run my own business for a minimum of 2 years. My 2 year mark is coming up from the new year (1. Jan 2013), and that's all well and good if we're buying an existing house, but if we want to build, we really need to sign a contract around August/Sept if we're going to have a house ready by the end of our lease in Feb/March. We are renting privately from the owner, so I suspect he may give us some leeway if we ask to extend our lease with a couple of months, but we don't want to count on this, and regardless of whether or not we do that we'll still need a building contract signed before I reach my 2 years of business ownership. So my question is, having only spoken to one bank, does anyone have similar experiences, and is there any chance of getting approved for a loan before the 2 year rule?? Thanks in advance! Some of our details that may be relevant: Location: Brisbane north/west side, QLD Price range: Max $300,000 Deposit goal: 10% Current savings: $10,000 Savings we're hoping to have by the time we go to get pre-approved for a loan: $30,000 FHOG eligible: $7,000 - provided they continue this Building boost eligible: $0 - because we'll be too late.. boo. His full-time income: $600 p/w My part-time income: $200 p/w Current income between both of us: Approx. $800 per week Settlement: 10.02.13 Slab: 06.03.13 Frame: 08.03.13 Lock-up: 05.04.13 Handover: 03.06.13 Build thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=59555 Brisbane Photography Re: Self-employed and home loan 2Apr 07, 2012 9:27 am we have just been through all of this.... husband is self employed and I work full time with 1 child. It was a real pain. We found a great broker in Sydney, we are in Melbourne and he was great. I can pm details if you are interested. He got us pre-approval when other brokers couldnt. It is correct about the business and 2 years. They will also take either your salary through the business or the net profit if you dont pay yourself. It is averaged over the 2 years, so having a big second year wont make any difference as they will average. The bank is normally ok to get approved, its the mortgage insurance company that is more fussy!. they will be more conservative than the bank. You are correct, once you sign the building contract you will need to get unconditional approval. We had 21 days to get approval. We have previously gone for full pre-approval ie provide all documentation so we knew exactly where we stood. Good luck! Re: Self-employed and home loan 3Apr 07, 2012 10:18 am Thank you, Silvergum! Maybe we'll start talking to some brokers to see where we stand. How much I earn isn't too important, I'm well over the required amount we need together with my husband's income to qualify, but it's just annoying how we can't actually do anything to get approval until that 2 year mark has passed. I have the details of a broker who apparently is really good here in Brisbane, so I think we will try them first, and if they're no good, I might ask you for the details for the Sydney guy! Thanks! Settlement: 10.02.13 Slab: 06.03.13 Frame: 08.03.13 Lock-up: 05.04.13 Handover: 03.06.13 Build thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=59555 Brisbane Photography The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19079 Hi guys, I want to do some floor levelling before laying the planks and am considering doing it with self-levelling or yellow tongue PB board. I am wondering which one… 0 6529 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 35309 |