There is a widely held perception that it is difficult, for the self-employed to access home loans, but this is not true.
It is not feasible to say that as a freelance contract worker or self-employed business owner you cannot access a home loan.
The first step the banks will do is run a credit check. The next thing you need to do, is get your documentation in order - bond originators have helped numerous entrepreneur's access home loans, and can assist the self-employed, contract and freelance workers put together the package that best shows their true earning potential and history.
Banks are not reluctant to grant home loans to self-employed people, but notes that in order to qualify, these applicants will generally be asked to produce different documents from the ones required from those in traditional employment.
However, this by no means disqualifies them from being approved for a home loan. It just makes it somewhat more difficult for banks to assess whether they are a good risk or not, and whether they meet the credit granting criteria stipulated by the National Credit Act.
Lenders always prefer buyers who have the financial discipline to save for a deposit and are prepared to invest some of their own money in their homes because they have been shown to be a better risk, in that they are much less likely to default on a home loan than those with no equity in their properties.
Self-employed borrowers can also make things very much easier for themselves if they apply through a reputable bond originator (Durban Property Finances). They are currently able to secure approval for more than 90% of the bond applications they submit, and their multiple-bank submission process also ensures that they are able to negotiate the best available interest rate for every client - and in the process set them up to cut a substantial amount off the total cost of their home over the life of the bond.
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