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Tell me, what features are there when you make a mortgage by a borrower, who is an IP?The main feature and difference of the procedure for issuing a mortgage loan to an individual entrepreneur is that for other categories of the population, a certificate of pay is a confirmation of the solvency. However, the PI cannot present such a document, since it does not have a salary, but there is income from entrepreneurial activity. In such a situation, the only way is to provide a tax return certified by the tax inspectorate.

The Next Stage

The next stage is the process of reviewing the application. Here an important point is the analysis of the submitted tax declaration by credit experts. In this situation, the profitability of entrepreneurial activity is important, and much depends not even on how much taxes were paid in the reporting period, but on the type of taxation system that an individual entrepreneur applies. Most of all, the use of general taxation or simplified taxation is welcomed, where the difference in income and expenses is shown. The fact is that, according to analysts, it is these two ways of taxation that make it clear whether the business is profitable. Fine options for the mortgage broker GeelongĀ .

  • As for banks, many have special programs with certain conditions for lending to IP. However, offers cannot be called preferential: usually businessmen are waiting for increased demands and higher rates. The probability of approval of the loan will be higher, and the conditions are optimal if the individual entrepreneur applies for a mortgage loan to the bank in which he has a current account.

Special requirements for borrowers-individual entrepreneurs in the legislation of the Russian Federation are not provided. However, in practice, things are different. Firstly, it is recommended to apply to those banks that specialize in issuing mortgage loans to IP, but such treatment must be filed a year later (not earlier) from the beginning of business. Such conditions are set for the bank to be able to obtain from the FE reports on economic activities, which can serve as evidence of solvency.

Each bank has its own rules, so the requirements for individual entrepreneurs when issuing a mortgage depend on the particular credit institution. In general, a mortgage loan will be more readily issued to those persons who:

  • stable permanent income;
  • a positive credit history;
  • Net (“transparent”) income.

All the above requirements are necessary for the bank to determine the solvency of the PI, to see its possibilities for repaying the borrowed mortgage, and to find out information on the repaid (for how long and without delays) or outstanding loans.

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