Mortgage for the self-employed: requirements and tips

Are you on the lookout for a mortgage for the self-employed and do not know what you’ll want? We provide you with some suggestions in order that you recognize what banks normally ask for and what it is best to look out for.

In Spain, in November 2021 there have been about 3.1 million self-employed. They’re a really giant group that, nonetheless, faces many obstacles. One in every of them, and one that may be an actual headache, is asking for a mortgage. Why is it extra complicated to get considered one of these loans if you’re self-employed?

Why is it troublesome to get a mortgage for the self-employed?

The financial institution will all the time favor prospects who pose a low threat to it. Your ideally suited profile is a everlasting employee, who has been in his place for a number of years, with sufficient financial savings and with out debt. The self-employed, however, are normally on the other aspect of those traits. Their enterprise typically doesn’t have a set earnings and, in lots of instances, forces them to borrow and incur debt (for instance, to buy equipment or to develop).

Thus, the primary trick that you would be able to play to get a mortgage for the self-employed are the financial savings. It’s possible you’ll not have a set earnings, however for those who present that you’ve a mattress and the flexibility to maintain saving, there will likely be no drawback. Nonetheless, to reveal all this, you’ll have to give him a whole lot of info to the entity about your funds.

On this article we evaluate the whole lot you want to show to the financial institution that you’re a solvent freelancer and we gives you some helpful tricks to get a superb deal.

What documentation is required for a mortgage if you’re self-employed?

1. Enterprise info

As we’ve got already talked about, the financial institution lends cash to these it is aware of that they may have the ability to return it. If you’re self-employed, they may ask you a small report about your enterprise, during which you element what you do, what sources of earnings you’ve, the initiatives you’ve underway, the age and historical past of your organization … On the whole, it’s a doc during which you clarify why your enterprise is stable and it’ll assist you to assume the mortgage cost.

2. Private earnings tax return

The final earnings assertion offered, because it offers info on the fiscal state of affairs of the corporate.

3. Tax returns

The quarterly VAT and annual abstractThough they aren’t important, they’re helpful to present the financial institution extra details about your monetary stability.

4. Financial savings

The financial savings mattress will likely be an excellent robust level to your utility. Subsequently, you will need to current present account actions (private {and professional}). Thanks to those information, the financial institution will know a bit higher the way you spend cash, what prices you usually assume, how a lot cash you’ve reserved for contingencies …

5. Up to date working life

The work life report is a doc that’s requested within the Social Security and during which it’s detailed the place they’re registered, how lengthy they’ve been quoted in every firm … This doc will give info on the age of your enterprise; the longer you’ve been a freelancer, the extra stable your state of affairs will look.

6. Mortgage receipts

The stage of indebtedness it’s a figuring out issue, each for the self-employed and for employed individuals. If an individual already has different credit or loans, will probably be troublesome for the financial institution to imagine the chance of giving him one other. Nonetheless, remember the fact that the remainder of the paperwork you present will point out whether or not the loans you have already got are an issue or not. It’s doable that you’ve different money owed, however that your enterprise has sufficient earnings to face them and they aren’t an obstacle.

Additional tricks to get the self-employed mortgage

Along with making ready the mandatory documentation, there are some elements that must be taken under consideration if you’re on the lookout for a mortgage.

Evaluate the affords for the worth with out reductions

It is rather frequent for a financial institution to decrease your rate of interest a bit for those who rent another product (life insurance coverage, bank cards …). As a result of, present mortgages normally have two totally different costs: one actual and one with the bonuses.

Once you begin the comparability, take note of the actual value. Mixed merchandise, which decrease the rate of interest, typically they do not compensate and so they find yourself being dearer. One of the best instance is that of life insurance coverage. In keeping with an impartial examine, these insurance policies are 93% dearer for those who rent them in a financial institution than in an insurance coverage firm. That suggests that, for instance, you’d go from paying 360 euros per yr to 695.

It’s fairly possible that the discounted rate of interest will likely be dearer than with out the bonuses. For those who save 10 euros a month on the mortgage, however you need to pay 50 a month for all times insurance coverage and the pension fund, it’s clear that it doesn’t compensate you. Subsequently all the time do calculations earlier than accepting the mixed merchandises and evaluate what specialised corporations give you.


Don’t settle for the primary possibility that they suggest to you. Usually, you possibly can negotiate with the entity; for instance, with commissions or with the worth of the mixed merchandise.

Evaluate, calculate and select the most suitable choice

As you possibly can see, getting a mortgage for self-employed requires some extra necessities than for employed staff. If that is your case, do not forget that you’ll have to present sufficient details about your enterprise and your funds to persuade the entity. And naturally, do not forget that mortgage phrases might be negotiated and you do not have to just accept merchandise that you do not need. At all times do calculations earlier than accepting: just for decline financial institution life insurance coverage it can save you hundreds of euros.