5 Tips for business owners applying for a mortgage

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Tips for business owners: Being a business owner in this current environment is anything but easy. When coupled with the stress of running your own business, applying for a mortgage can feel completely overwhelming, but don’t worry – we’re here to help!

When applying for a mortgage as a small business owner, there are a few things to consider that can affect your chances of getting approval.’

Be sure to consider these 5 tips before you get too far into your application to avoid disappointment.

  1. How much do I need for a deposit?

The short answer to this question is – The more the better. The higher your deposit, the better your chances and deal will be. The ideal deposit is around 20% with an additional 5% to cover costs and help with any additional costs along the way.

There are also a number of other factors to look at with your Mortgage Advisor to determine if you will be alright to apply with a smaller deposit than this. These factors include:

  • How long the business has been established
  • Your credit score
  • The type of property
  • Any other loans
  • Whether or not you already own other properties
  1. How long is long enough?

How long the business has been established can have a very large effect on not only your interest rates, but also your chances of getting approval at all. Many lenders will have a minimum time requirement for businesses and most banks will want to see at least 2 years in business.

There are some lenders that will only require 1 year or even 6 months, provided that the business is doing well, but always make sure to speak with a Glass Financial Mortgage Advisor so you know what you’re getting into and can put in the strongest application possible.

  1. What other loans do I have?

If you have any other debts or repayments, lenders will also look at these to assess whether you’re credit worthy. Our Mortgage Advisors will run calculations and determine how much you are able to borrow, and if you’re purchasing, the price range you can currently afford.

With the prices of properties still sky-high in many areas, having enough deposit and accessible income are very important parts of the application and should be sorted out as soon as possible.

  1. What’s on my credit file?

Before applying with any lender, it’s very important to first have a look at your credit file. Our experts are able to do this for you without creating a string of enquiries which can tank your credit score.

Alternatively, you are also able to view your credit file for free each year by contacting any of the credit reporting bureaus in Australia.

  1. What business structure am I in?

There are countless different types of business structures you can choose from. If your business involves another business partner or is a company structure with directors and partners, they will all need to be disclosed and assessed during the application.

The more information you are able to provide, the better your odds of getting approval will be. Similarly, the sooner you speak with the team at Glass Financial about your potential loan, the more likely you are to get approval.

Our focus is, and always will be, on our customers, and getting them the right financial solution to suit their circumstance. This means you can be certain that you will always get the right deal, with the right lender, and the right deal each and every time you work with Glass Financial.

Speak with us today on 1300 245 277 or send an email to [email protected]

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