Dream a house and self-employed

Some people think, “Hey, I’m self-employed. It’s impossible for me to get a mortgage.” Well, it’s hard especially at he beginning of self-employment but not impossible. There’s a lot of small businesses in New Zealand. New Zealand is made up of small business owners some are contractors for big companies, some own local shops and others may have online business.

If having your own house is your dream then spend some time to find out how to make the dream come true. Most banks are looking for two years of financials to show your proof of income, sometimes the banks are going to let you get projections if your future earning is strong and reliable, the banks want you to show them that you are capable of paying back the loan even if the economy goes bad.

Apart from borrowing from the main banks you can use is some mortgage options, low documents options. This isn’t going to be with a main bank. There are no doc options which will cost more than a main bank. Therefore this should be your second option in term of borrowing.

If you are lack of time contacting each bank and have some doubt in your mind about your lending options, then talking to a mortgage broker is an option, a good mortgage broker knows the market well and has access to most of the banks because they get paid commission from your borrowing so until you get your loan they are not getting paid.

Sometime even if you can’t get a loan to buy the house straight away, it is still worth knowing the requirements so you can work towards them. Once you set your goal there is higher chance for you to make it happen.

Documentation you may need:

• a copy of your current Passport (or Drivers License and Birth Certificate)

• if you are employed

  • your 3 most recent payslips

  • 2 years confirmation of any bonuses you receive

• if you are self-employed:

  • Accountant prepared Financials for March 2020 year

• 3 months of your spending (EftPos) account statements

  • Note: these must include the bank accounts that receive your wages

• 3 months of your savings account statements

• a printout or screenshot showing the balance of any KiwiSaver Accounts (only required if you plan to use KiwiSaver for your deposit)

• if you are receiving a gift from your family

  • a copy of a Gifting Declaration

  • note: we can provide a template for this if you require.  Contact your Adviser to get a copy of this.

Optional documents:

These documents aren’t necessary at the approval stage but showing them can make the bank more relaxed about your application

• if you are purchasing the property in a Trust

  • a copy of the Trust Deed

• if you have a student loan

  • a copy of your Student Loan balance from the IRD website

• any information you have on the property you are interested in.  Usually the Real Estate Agents will send you various documents.

• if you are purchasing an investment property

  • a copy of a rental appraisal from a Rental Firm or a Real Estate Agent, you can always get it for free.

It may look like a lot of documentation but it actually amounts to: ID, income, bank statements and proof of deposit.