Self-Employed
Your business, your home, your future
Do you dream of owning a home as a self-employed entrepreneur, but find it challenging to get a mortgage due to your independent income? Don’t worry, with the right guidance, it’s achievable! Whether you're just starting or already an established business owner, we understand the nuances of your financial situation. We help you understand what you can borrow, how to make the most of your entrepreneurial income, and what options are available to you. Together, we’ll ensure that your home is as strong as your business.
What you need to know and what banks ask for
As a self-employed entrepreneur, obtaining a mortgage can seem more challenging than for an employee, but with the right preparation, you can definitely secure a mortgage that fits your situation. Banks and lenders look at various factors to assess whether you qualify for a mortgage and how much you can borrow. Below, we list the key aspects and what banks typically want to know when applying for a mortgage as a self-employed individual.
1. Inkomen en winst
One of the main things banks look at is your income. As a self-employed person, your income is often less stable than that of an employee, so banks usually look at your average profit over the past three years. This gives them insight into the continuity of your income. Are you just starting as an entrepreneur? Then, they’ll look at your expected income based on your plans and market conditions.
What the bank often asks:
- What were your turnover and net profit over the last three years?
- Do you have concrete expectations for the coming years?
- How much tax have you paid in the past few years?
2. Belastingaangiften en financiële overzichten
Your tax returns give banks insight into your actual financial situation. Since self-employed individuals can deduct many expenses, such as business costs, it’s important that your tax returns are accurate and up-to-date. A complete and accurate tax return is crucial for a mortgage application.
What the bank often asks:
- Can you show the tax returns for the past three years?
- Have you had tax deductions as a business owner, and how do these affect your final income?
3. Stabiliteit van je onderneming
It’s important for banks to know how stable your business is. If you rely on a few large clients or projects, it could be risky. The more diverse your client base and the longer your contracts, the better this is for your mortgage application. You need to demonstrate that your income is stable enough to cover your monthly payments.
What the bank often asks:
- How many clients do you have, and are these long-term contracts or projects
- How stable is your income flow in the long term?
4. Eigen vermogen en spaargeld
Your assets and savings can play an important role in your mortgage application. If you have built up equity, for example through savings, property, or other assets, it can positively contribute to your application. Banks want to know if you have financial reserves for unforeseen circumstances.
What the bank often asks:
- Do you have savings or other assets that you can use as a buffer?
- Have you built up reserves for business expenses or investments?
5. Risico’s van je onderneming
Banks want to understand how low-risk your business is. They’ll look at whether your business is susceptible to market fluctuations or other external factors. If you’ve positioned your business well and mitigated risks, it can positively impact your mortgage application.
What the bank often asks:
- How is your business affected by market or economic changes?
- Have you taken specific measures to reduce the risks of your business?
6. Rekeningoverzichten en debiteurenbeheer
Your bank statements give the bank insight into how you manage your finances. They want to see that both your business and personal finances are in order and that you meet your financial obligations. The bank may also ask about any other loans, such as personal credits or business loans.
What the bank often asks:
- Can you provide the latest statements for your business and personal accounts?
- Do you have any other debts or loans that could impact your loan?
7. Verzekeringen en pensioen
As a self-employed individual, it’s important to think about your pension and disability insurance. Banks often want to know if you are well-prepared for potential risks. If you have a pension plan or insurance that covers your income if you can’t work temporarily, it’s seen as a positive point.
What the bank often asks:
- Do you have a pension plan, and are you insured against disability?
- Do you have other insurance that protects your income in case of illness or accidents?
8. Zakelijke kosten en aftrekken
As a business owner, you can deduct many expenses from your taxes, such as office space, equipment, and other business expenses. However, banks keep in mind that these deductions affect your taxable income. They want a clear picture of your actual income after business costs have been deducted.
What the bank often asks:
- What business expenses have you deducted in your tax return?
- How are these deductions calculated by the tax authorities, and what is their impact on your net income?
Step-by-step to your dream home
As a self-employed person, a mortgage application can be complex, but with proper preparation, it’s certainly possible. The bank will look at your income, tax returns, assets, and the stability of your business. Make sure your paperwork is in order and that you submit the right documents so you can confidently apply for your mortgage and make your dream home a reality! We’re here to help you at every step of the process, so you can make the right choices with confidence.
