A mortgage as a starting entrepreneur. Is that possible yet?

You've started your own business. Exciting and fun! But suddenly things like profit-and-loss statements, tax returns and forecasts come along. And then the question comes: can I actually buy a home yet? The short answer: often yes. Even if you've been in business for less than three years. The long answer is below.

When are you a 'starting' entrepreneur?

Lenders consider you a starting entrepreneur if you've been in business for less than three years. Note: that's not necessarily your Chamber of Commerce registration date. What matters is the period in which you actually earn income from your business. If you were registered for a while without real activity, the clock may start later than you think.

Within those three years, a simple rule applies: the longer you've been in business, the easier it is to establish your income. Three full financial years is easiest. But 3, 6 or 12 months in? There are options then too.

What does a lender look at?

Mainly at your track record and your potential. Have you done the same kind of work as an employee for years and then started for yourself? Think of an IT developer going freelance. Lenders see that as a logical step. Your employment income can then serve as the basis for determining your assessed income.

Every lender calculates differently

And this is where it gets interesting. Some lenders fully count your first year as income. Others calculate with, say, 75% of that first year. Yet others look at a forecast from your accountant or at your average over the years available. The possibilities vary widely — and so does the difference in what you can borrow.

That's why it pays not to stop at one lender. We compare the policies of dozens of lenders and know which one fits your situation.

Our take

Don't wait until you've been in business for three years if you want to buy a home now. Just have your position calculated. We have a lot of experience with (starting) entrepreneurs — even if you've only been active for a few months. In a personal online conversation we'll look at what applies to you and which lender fits.