The majority of lenders will not lend to super funds for investment properties because the lender has no recourse in the event that there is a default on the loan. Therefore, most lenders require a minimum deposit of 20-25% and some lenders also require personal guarantees from the members of the superannuation fund.

For new trusts, some lenders will look at the current income of the trust beneficiaries, the previous super contributions they have been making and their proposed new super contributions.

The SMSF loan can be assessed based on your proposed super contributions if they are within the maximum amounts allowed by the ATO and if you can afford these contributions without hardship.

Working closely with your Trinity Finance team member will ensure all options are explored and a clear way forward is presented to achieve the investment outcome you are seeking.

A low-doc or no-doc mortgage is ideally suited for investors or self-employed borrowers looking to refinance, purchase or renovate. 

Low Doc home loans are often perceived as higher risk by the lenders, because the income of the borrower cannot be substantiated by conventional means. As a result, a Low Doc loan would usually have a higher-than-average interest rate; plus more limitations in terms of the maximum Loan to Valuation Ratio (LVR), available loan features and package discounts.

A self-employed borrower would typically need to provide proof of income using a combination of the following:

• Proof of ABN and/or GST registration

• Business Activity Statements (BAS)

• Business Account transaction statements

• Accountant’s letter

• Personal tax returns

Before applying for a Low Doc home loan, it's worth sitting down with an experienced mortgage broker to work out your net income and the amount of loan you can realistically afford to service on a regular basis. Doing this could help to avoid disappointments, plus you could also uncover more lenders or product choices which you were not previously aware of.

People with low credit scores or who have finance needs that are a little out of the ordinary can often have trouble sourcing a home loan. Many lenders now offer what are known as 'non-conforming loans' for people in this type of situation.

While lenders are willing to overlook prior credit problems, they will want to see some evidence of your ability to repay the loan. A larger deposit than what is usually required for traditional loans may also be required.

Here are some of the signs that you might not be a 'perfect match' for some of the lenders out there:

• You don't have a perfect credit history (e.g. previously declared bankruptcy, missed loan/bill payments in the past)

• You have a solid income, but not much of a deposit

• Your work means you regularly change jobs (it may look like there's no stability, but it's just the nature of the industry)

• You need to consolidate a few other debts such as personal loans, credit cards or business debt

• You have recently started a business or a new job

• You are self-employed

But even if the banks have said 'no', it doesn't mean there aren't other options. 

At Trinity Finance, we have access to hundreds of home loans, from a range of funders which includes lenders that specialise in helping people just like you. We’ll have a chat to get to know you and understand your situation, so we can help find the lender, and the loan, that best suits you.

As a self-employed individual, obtaining finance can come with some unique considerations compared to traditional employees who receive a regular paycheck. Here are some key points to understand about self-employed finance:

• INCOME DOCUMENTATION: Self-employed individuals often have different income documentation requirements compared to employees. Lenders may require additional documentation, such as business financial statements, profit and loss statements, tax returns (both personal and business), and other financial documents to verify income and assess the borrower's ability to repay the loan.

• CREDITWORTHINESS: Just like any borrower, self-employed individuals need to demonstrate good creditworthiness to qualify for finance. Lenders may assess credit history, credit scores, and other factors to determine the borrower's creditworthiness and risk profile.

• BUSINESS STABILITY: Lenders may also assess the stability and viability of the self-employed individual's business. This may include evaluating the length of time the business has been in operation, its financial performance, industry stability, and growth prospects.

• DEBT-TO-INCOME RATIO: Lenders may evaluate the self-employed individual's debt-to-income (DTI) ratio, which compares the borrower's monthly debt payments to their monthly income. A lower DTI ratio is generally preferred, as it indicates a lower risk of default.

• DOWN PAYMENT: Self-employed individuals may need to provide a larger down payment compared to traditional employees, as it can be considered as a way to mitigate the lender's risk. The down payment amount may depend on the type of finance being sought and the lender's requirements.

• ALTERNATIVE LENDERS: Self-employed individuals may also explore alternative lenders, such as online lenders or specialised lenders who cater to self-employed borrowers. These lenders may have different qualification requirements and loan products designed specifically for self-employed individuals.

• FINANCIAL PLANNING: As a self-employed individual, it's important to have a solid financial plan in place, including budgeting, tax planning, and maintaining adequate financial records. This can help demonstrate financial stability and improve the chances of obtaining finance at favourable terms.

Obtaining finance as a self-employed individual may require additional documentation, planning, and considerations compared to traditional employees.

It's important to work with a reputable lender who understands the unique needs of self-employed borrowers and to carefully review and understand the loan terms and conditions before proceeding with any finance agreement. Seeking professional advice from a financial advisor or accountant can also be beneficial in navigating the complexities of self-employed finance.