Self-employed home buyer tips
Category Advice
Self-employed individuals in South Africa are finding it increasingly difficult to obtain finance to secure transactions from traditional lenders, as they are viewed as high risk candidates with unpredictable earnings. As a result, the growth potential of many of South Africa’s self-employed individuals is being hindered.
SA's self-employed individuals often find it a struggle to get a home loan, as they are viewed as high risk candidates with unpredictable earnings.
This is according to Gary Palmer, CEO of Paragon Lending Solutions, who says that as a result of the strict regulatory environmenthe has witnessed an increase in the number of unsuccessful loan applications by business owners, regardless of the full business potential of the client.
“South Africa’s banking sector has tightened up its regulations around the lending criteria to self-employed individuals arguing that their earnings are volatile, despite the fact that some self-employed individuals earn more than those employed,and as such self-employed individuals are increasingly making use of alternative lending solutions by non-bank lenderswho are providing much-needed cash flow to take advantage of opportunities.”
Read the complete article at www.property24.com
Author: Property 24
