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6 Tips for Applying Housing Loans for the Self-Employed

BY Team Loanstreet

Updated 23 May 2023

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When you have fluctuating income streams as a freelancer, consultant or business owner, applying for a home loan may seem intimidating. However, don’t worry, there are still ways to persuade the banks to give you a home loan!

Here are the essential documents and tips you should prepare to improve your chances to seeing the ‘approved’ stamp on your housing loan application.


What's covered in this article?

First, prepare these documents to support your housing loan application as a self-employed:


Usually, you’d need to submit the following to ensure a smooth home loan application process:

  • Payslips
  • EPF statements
  • Bank statements
  • Copy of MyKad

But, these might not be enough for a self-employed person. And, you might have problems providing the first two documents on the list above.

So here are the non-standard documents self-employed can use for home loan applications:

  • Business Registration - Register your business, even if it’s a one-person show. A registered business looks legitimate and established to banks, proving your income source is sustainable. The longer you’ve been registered, the more stable your business appears.
  • Detailed Business Profile - Create a professional-looking profile of your business, be it a website, Facebook page, or LinkedIn profile. This allows banks to understand your business and revenue model.
  • Financial Statements - Gather income tax returns, profit and loss statements, balance sheets and bank statements for the past 2 to 3 years. Organised financial records demonstrate the stability and growth of your income over time. The more years of records, the better.
  • Income Tax Statements - File income tax returns annually even if your annual income falls below the taxable threshold (RM34,000). Income tax statements serve as official proof of your income to banks.
  • Bank Statements - Bank statements showing business income and revenue over time further prove your income stability and ability to repay loans. Personal savings also reflect your financial discipline.
  • Credit Score Report - Banks determine your credit risk and loan eligibility based on your CCRIS and CTOS credit scores. Review your credit report, clear any erroneous debts and maintain a good credit standing. A favourable score leads to more attractive loan terms.

What else can you do to improve the success rate of your home loan application?

  1. Declare Your Earnings - LHDN needs to see your real income to properly assess your taxes and credit risk. Under-declaring earnings is illegal and can get you into trouble.
  2. Contribute to EPF - Make regular EPF contributions even if you’re self-employed. EPF statements are strong proof of your income stability to banks.
  3. Reduce Your Debt-to-Income Ratio - Pay off any outstanding debts and avoid taking on more debt before applying for a home loan. A lower DTI ratio means you have more disposable income to service the home loan.
  4. Make a Large Down Payment - A larger down payment, ideally 20% of the property price, reduces the loan amount needed and your interest cost. You’ll also have a higher chance of getting approved with a large down payment.
  5. Get a Mortgage Pre-Approval - Meet with a few banks to get a pre-approval for a mortgage amount you can afford based on your income documents. Or, just use Loanstreet’s Comprehensive Home Loan Eligibility Report to determine your loan eligibility across 17 banks in Malaysia. With pre-approval, you can make a firm offer when buying a home.

All in all, getting a housing loan as a self-employed individual presents more challenges,  but perseverance and financial prudence will pay off. Gather the necessary documents, reduce your debt load, do your due diligence and choose a bank with the best package for you.


Now that you’re all set, apply for your home loan online today!


If you’re looking for a top-notch home loan service with great savings, check out Bank of China (Malaysia) Flexi Home Loan package. It offers benefits like flexi loan options, and competitive rates from as low as 4.10%* p.a. (valid till 31 December 2023).

Even better, you can now apply for your home loan online! With BOCM e-Mortgage Platform. It has an e-Mortgage Appointment function that allows potential customers who would like to enquire more about BOCM mortgage loans to make appointments digitally. Prior to this, the customer needs to call in the Bank’s hotline or approach the nearest Branch or the Bank mortgage loan sales staff for a loan appointment/application.

Meanwhile, the e-Mortgage Application function enables customers to submit the mortgage loan information online prior to the Bank proceeding with the assessment. Customers can also upload the application documents to apply for loans digitally.

So, ready to get started? BOCM e-Mortgage Platform makes applying for a home loan simple and fuss-free. Together with an attractive Flexi Home Loan package, BOCM helps make homeownership a reality for self-employed borrowers.

Begin your home loan journey with BOCM e-Mortgage Platform today. Terms & Conditions apply. Good luck! 

*Mortgage Loan Campaign 2023 Terms and Conditions apply
**The above article is intended for informational purposes only. Loanstreet accepts no responsibility for loss that may arise from reliance on information contained in the articles.

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About the Author

Team Loanstreet

Run by a professional human-sized team, get resourceful tips & guides from our very own library of financial articles that can help improve your financial lifestyle & make a well-informed money decision. We strive to provide you with the best service in helping you to get the most out of that DUIT!


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