Loan application after becoming self employed

I am considering quiting my full time job and becoming a self employed contractor (basically doing the same work but getting paid more!). In the next six months my wife and I will be also looking at applying for a new home loan.

I would be able to show my income from the previous two years (as a permanent employee), but probably wouldn't have much history from being self employed. My wife has a normal full time position so her income would be also be considered.

For the loan amount, my income would need to be included.

Does anyone have any insights? Is self employed automatically forced to do a "low doc" loan? Or can self employed get a full doc loan?

Thanks,

Jason
 
Hi Jason

Unlikely to get a lodoc loan approved at an normal lvr unless you have held your ABN for 2 years + (the odd exception out there) so where possible i would look to go full doc.

Only issue would be probably going to need at least 1 year (maybe 2 years) Individual Tax returns and not require LMI as most will run a mile.
 
To add to Richard's comment above, I would be looking at applying for your loan before you change positions and become self-employed.;):)

Regards JO
 
depends on the LVR, AND when us say the same work, if that means for the same folk, but just on contract, you might be able to wing it if its an 80 % or less lend

ta
rolf
 
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