How to Get Home Loans as Self-Employed Midwives

Self-employed midwives face unique challenges when applying for a home loan in Australia. While the property market offers numerous opportunities, understanding the specific requirements for self-employed borrowers is crucial for a successful Home Loan application.

Understanding Self-Employed Borrower Requirements

Lenders assess self-employed borrowers differently than traditional employees. As a self-employed midwife, you'll need to demonstrate stable income and financial responsibility through comprehensive documentation. Banks and lenders across Australia require additional evidence to verify your borrowing capacity and assess your financial situation.

The key requirements include:

• Two years of tax returns and notices of assessment
• Banks statements covering 6-12 months
• Business Activity Statements (BAS) for the most recent quarters
• Accountant-prepared financial statements
• ABN registration and business licence documentation
• Proof of professional registration with the Nursing and Midwifery Board

How Lenders Calculate Your Borrowing Capacity

When determining your loan amount, lenders examine your average income over two years of tax returns. This differs from employed borrowers who can rely on current pay slips. Your borrowing capacity depends on:

• Net profit shown in tax returns rather than gross income
• Consistency of income across financial years
• Business expenses that may reduce taxable income
• Current debt obligations and living expenses
• The loan to value ratio (LVR) you're seeking

Lenders may average your income or use the lower of the two years, which can impact the maximum loan amount available to you.

Home Loan Options for Self-Employed Midwives

Access Home Loan options from banks and lenders across Australia varies significantly for self-employed borrowers. Several loan types suit different circumstances:

Low Documentation Loans: These products require less paperwork but typically come with higher interest rates and stricter LVR requirements.

Full Documentation Loans: Traditional loans requiring complete financial documentation but offering more favourable interest rate options.

Professional Package Loans: Some lenders offer specific packages for healthcare professionals, including midwives, with potential interest rate discounts and fee waivers.

Managing Interest Rates and Loan Features

When buying a home as a self-employed midwife, understanding your interest rate options is essential:

• Variable interest rate: Fluctuates with market conditions, offering flexibility
• Fixed interest rate: Locked rate for a set period, providing certainty for calculating home loan repayments
• Split loans: Combine fixed interest rate home loan portions with variable home loan rates

Consider features like offset accounts to reduce interest payments. An offset account links your savings to your home loan, reducing the balance on which interest is calculated.

The Application Process

The application process for self-employed borrowers involves several steps:

1. Preparation: Gather all required documentation well in advance
2. Pre-approval: Get pre-approved to understand your borrowing limit
3. Property search: Look for properties within your approved loan amount
4. Formal application: Submit your complete Home Loan application
5. Assessment: Lender reviews your financial situation and the property
6. Approval: Final loan approval and settlement preparation

Home Loan pre-approval provides confidence when making offers and demonstrates serious buyer intent to vendors.

Additional Costs to Consider

Beyond the loan amount, factor in additional costs:

• Lenders mortgage insurance (LMI): Required when borrowing above 80% LVR
• Stamp duty: Varies by state and property value
• Legal and conveyancing fees
• Building and pest inspections
• Ongoing loan fees and charges

Tips for Strengthening Your Application

To improve your chances of approval:

• Maintain detailed financial records
• Minimise business tax deductions in the years before applying
• Build a substantial deposit to reduce LVR requirements
• Maintain consistent bank account behaviour
• Consider using a mortgage broker familiar with healthcare professionals
• Keep business and personal finances clearly separated

Utilising home equity from existing properties can also strengthen your position for future property investments.

While the application process may seem complex, self-employed midwives can successfully secure home loans with proper preparation and understanding of lender requirements. Professional guidance can help you access the most suitable Home Loan options and achieve your property ownership goals.

Call one of our team or book an appointment at a time that works for you to discuss your specific circumstances and explore the home loan solutions available to self-employed midwives.