If you are an Internet Marketer, getting a home loan is not an easy task.
Internet Marketing is an industry that many banks do not understand, and as a result most internet marketers have their home loan applications declined.
Whilst it may not be easy to get a loan approved from lenders, it is possible with the right help!
How can we help you?
How we help you can depend largely on your income type.
In most cases, internet marketers receive a large portion of their income from overseas. This is classed as foreign income and considered high risk by most lenders.
This means that you are likely to have your home loan application declined.
If you are able to prove your income by providing two years of Australian tax returns then you can borrow up to 95% of the property value.
There are other ways of verifying your income which can allow you to borrow up to 80% of the property value. These can include:
- A letter from your accountant.
- BAS statements. In some cases, affiliate marketers’ income is from overseas. This means that the income is GST free. The trouble with this is that the income may not show up on the BAS Statement at all. Lenders may also ignore the income as a result of this.
- 6 months of bank statements showing what income you have received.
Ultimately the nature of your income will determine how much the bank will be willing to approve.
With each home loan, you must meet the policy lending criteria. This often includes a clear credit history and you may need to show genuine savings. You must also meet all other standard lending criteria.
To find out how we can help, contact us on 1300 889 743 or enquire online today!
Is affiliate income accepted by lenders?
For a lot of internet marketers, affiliate income is primarily earned overseas. Typically this income is GST free and so does not show up on BAS statements.
This can be an issue when trying to verify your income and lenders may ignore the income!
If you earn your money through AdWords campaigns then you are considered to have an affiliate income. If you spend money on AdWords, you actually receive your income from affiliates such as programs like Clickbank or from the sale of your own products.
This can be considered as an assessable income depending on what documents you can provide to verify this and which bank you apply for a mortgage with.
Do you earn through Google AdSense?
Income earned through Google AdSense is often paid to an Australian bank account. Whilst the money is paid to an Australian bank account, the money is coming from Google in Ireland.
This is classed as a foreign income, often GST free and may or may not be used by the banks when they calculate how much you can borrow.
We can use your Australian bank statements to prove your income, allowing you to borrow up to 80% of the property value. If you can provide two years of Australian tax returns you may be eligible to borrow up to 95% of the property value.
To find out which lender will approve your mortgage, contact us on 1300 889 743 or enquire online and speak to one of our mortgage brokers who will help you get approval.
Do you earn by offering web services?
Many online income types fall under web services. These can include:
- SEO services / consulting
- SEM / AdWords consultants
- Web design
- Web development
These web services are typically paid for into an Australian bank account from Australian companies. This means that they normally include GST.
If you can prove this income with two years tax return you can loan up to 95% of the property value. If you cannot prove your income easily then consider a low doc home loan.
Has your income increased recently?
Let’s suppose your online business has recently taken off and you provide two years tax returns which show one year with a low income and one year with a much higher income.
Now if your income has changed by more than 20% between the two years, then banks will typically use 120% of the lower year’s income.
For example if you earned $50,000 in year one and $150,000 in year two, then most banks will only assess your income as being $60,000.
However, not every bank assesses your income using this methodology. If you can explain why there was the change in income and show that this income is likely to be received for the foreseeable future, then you can get your loan approved.
Call us on 1300 889 743 or enquire online and one of our mortgage brokers will let you know how the lenders will view your income!
Why do banks dislike Internet Marketers?
Internet Marketers tend to have an irregular income, so it is common to have months where you can make a larger income than others. However, having the money isn’t the major concern, it’s more of the lack of a consistent cash flow.
Whilst most internet marketers may be good with managing their money, there is always the risk that some aren’t. Therefore they are seen as high risk borrowers.
Proving your income can be difficult as an internet marketer because a lot of income earned from internet marketing is seen as an overseas income. This means it is GST free and doesn’t show up on your BAS statement and if a bank can’t see your income then they can’t approve a mortgage for you.
Can you qualify for a mortgage?
We understand that it can be difficult for Internet Marketers to secure a home loan, but it is not impossible!
Our mortgage brokers know which lenders are more favourable to internet marketers and which one is best suited for your type of income. Call us on 1300 889 743 or enquire online and find out how we can help you obtain a mortgage!