Business owners and sole traders
Home loans for the self employed can be difficult to gain an approval. Knowing what the banks want can help you overcome this hurdle. If you are a sole trader you will also fall into this category.
Individuals that are self employed are required by most major banks i.e ANZ , ASB, Westpac & BNZ to provide a minimum of 2 years full financial statements. All previous and current IRD tax obligations should also be up to date.
Full financial statements often hold more merit if they are done by a chartered accountant. If you are someone that doesn’t use an accountant the banks may request a receipt of your IR3 & IR10 for a soletrader or IR4 & IR10 as a registered company.
My business has 1 year of full financials
1 year full financial statements may be an exception to the rule for major lenders. Your previous and current net profit earnings, future forecasted revenue, business stability and industry are all factors that to be considered.
I don't have 1 year of full financials
There are no exceptions for major banks to consider this timeframe of business activity. However, several non-bank lenders may accept an application if a minimum of 6 months GST receipts are provided as proof of income. Non-bank lenders are becoming a popular option.
See our ‘Bank Said No’ page for more non-bank information.
What if my net profit does not look strong?
Major and Non-Bank lenders may allow us to ‘add back’ certain expenses you have written off to increase your application’s net profit. These expenses include home office, interest on loans and depreciation.
If the net profit after the ad backs still does not meet the serviceability criteria of the lender, your application may be turned down.
Contact us if you would like further clarity, or to run through a quick serviceability calculation of your scenario.
Why Moose Mortgages & Insurance?
Our service is free
The mortgage and insurance companies we work with pay us, so you don’t have to. If there’s ever a fee, we’ll talk to you about it before we do any work.
Personalised advice
Personalised advice helps make sure your mortgage or insurance fits your financial goals. This could save you thousands over time.
Compare your options
If you want to apply to more than one bank, we can do that for you without making you fill out the paperwork again. If you go directly to the banks, you’ll have to start from scratch, which takes a lot of time.
Full support
We’ll walk you through the whole process, answer all your questions, and keep you in the loop every step of the way. We’ll also review your mortgage or insurance every year to make sure it still fits your needs.
Why should I use a mortgage adviser?
Our service is free for you when working with a major bank. The banks pay us when you settle a home loan with them. We make the whole process easy, explain everything in plain language, and help you get into a home faster.
Getting expert mortgage advice can help you pay off your home loan sooner and save thousands in interest. We’ll recommend a loan that’s tailored to your goals.
We work with over 15 lenders in NZ. This means we can apply to more than one bank if required without you having to fill out the paperwork more than once.
- Most banks will pay us so you don't have to. If theres ever a fee involved we'll talk to you about it first.
- We support you every step of the way.
- Get expert mortgage advice tailored to your goals.
- Access to over 15 major and non-bank lenders.
Use our link ‘Get Started’ to create a profile and answer a few questions to outline your home lending goals and financial position. It only takes a few minutes.
Once you’ve completed our online fact find, an adviser will contact you to arrange a meeting in person, online, or over the phone. We’ll use your answers to estimate how much you can borrow and what your repayments might be, making sure they fit your property goals. We’ll also discuss which banks might be the best option for you.
You’ll receive a document explaining what our adviser does, their Financial Service Provider (FSP) number, and how we’re paid by most lenders. If there’s a fee for our advice, we’ll tell you upfront before you decide to use our service.
After our meeting, we’ll prepare a bank application for the lender(s) that best suit your needs. You’ll have a chance to review it via email before we submit it.
Once you’re approved, we’ll guide you through your lending conditions and make sure the property you’re interested in meets the bank’s requirements.
Once your lending conditions are met, we’ll review pricing and meet to discuss your loan structure. Then, we’ll prepare a statement of advice with our recommendations for you to review.
If you need any changes, the adviser will adjust the recommendation to ensure it suits your needs before you decide to accept or decline it.
If you accept the adviser’s recommendation, we’ll arrange for your bank to document your loan structure and send the loan documents to your solicitor.
Next, you’ll sign the documents with your solicitor and get the keys on settlement day.
Your adviser will check in 30 days before your fixed rate renewal or once a year to review your mortgage. This helps ensure it still suits your needs as your life changes.