Sarah, a marketing professional with 10 years of experience, recently made the leap from full-time employee to business owner in late 2024. Her journey illustrates the challenges and opportunities that come with such a transition when applying for a home loan.
The Challenge
Sarah faced several hurdles in her transition:
- Incomplete financial documentation as a new business owner
- Urgent need for an approval to purchase her home to live in
- Employment status
Our Approach
After assessing Sarah’s situation, we developed a strategy to help her secure financing:
- Explored low-doc loan options suitable for new business owners
- Assisted in gathering alternative income verification documents
The Process
We helped Sarah prepare the following for her low-doc loan application:
- Recent payslips from her previous employment
- Bank statements showing consistent income and savings patterns
- A letter from her accountant verifying her recent activity trends
We also educated Sarah on the current mortgage market conditions, including:
- The potential for interest rate cuts later in 2025, as predicted by major banks
- The impact of these cuts on borrowing capacity and loan affordability
The Outcome
Thanks to this approach:
- Sarah secured a low-doc loan with a competitive interest rate
- She was able to buy a home to live in
- Her business is now growing, with plans to hire her first employee by year-end
- We’ve set a plan to reassess her situation in 12 months, with the goal of refinancing to a full-doc loan once she has a full year of business financials
This case demonstrates how tailored financing solutions can help new business owners bridge the gap during their transition from employment to entrepreneurship. We have access to over 50 different lenders, and we specialise in finding the right solution for your unique situation.
