Home loans for professional athletes
6 min read
Home loans for professional athletes
In the past it was very hard for professional sportspeople to get home loans due to sometimes inconsistent income, variable income sources and the general nature of the industry they operate in. Over time however, lenders have made it their business to ensure home loan options are available to professional athletes and made it easier for them to get to be able to borrow to buy property with ease.
Why should professional sports people and athletes work with a broker?
Brokers like Entourage are a great resource for those looking for home loans for professional athletes. A broker is like a coach for your finances. We help you understand your numbers and provide guidance on what type of property is going to meet your needs via our property advisory team. Our team helps you put your best foot forward with the bank to get you the best outcome for your purchase.
Great packages and discounts for professional athletes
Professional athletes, just like other professionals, are able to borrow up to 90% of the property value without having to pay lenders mortgage insurance (LMI). This will save thousands of dollars as the cost of LMI can be very high depending on the value of the property being purchased.
Read more about LMI here if you aren’t sure what it is and how it affects you.
How much can I borrow?
Every person is different and there are a range of different factors the bank will look at when determining how much you can borrow. This includes things like:
- Your taxable income
- Assets and liabilities/debt
- Credit cards
- Living expenses
- Credit score
- Debt to income ratio
When it comes to the LVR of the loan, the maximum sportspeople and athletes can borrow up to 90% of the value of the property without needing to pay LMI.
Which sports or athletes are covered?
Any professional sportsperson can apply for the home loan for professional athletes provided they meet the minimum income requirements and have an accredited manager or agent. The assessment the bank makes is not based on your sports or industry. If you play professionally in any of the following sports this type of home loan is available:
- AFL
- Athletics
- Basketball
- Cricket
- Cycling
- Golf
- Hockey
- Motor Sports
- NRL
- Olympians
- Rowing
- Running
- Rugby
- Soccer
- Surfing
- Swimming
- Tennis
- Track and field
- Triathlon
How do I know if I qualify?
You may need to earn a minimum income to be eligible for a professional athlete home loan and meeting other lending and servicing requirements. Your broker will be able to advise you of this at the time of enquiry.
Will my personal details end up in the public arena?
No. Entourage have represented a number of athletes, ex-athletes, coaches and play managers over the years. Your confidentiality and privacy are of utmost importance to our business. All customers, whether a professional athlete or not, are subject to careful data protection and privacy.
Is there a minimum amount of time I need to be playing professionally to qualify?
Yes, generally they require that you have been playing professional for at least two years. At times there can be exceptions to this, and will review on a case-by-case basis. For example: if you have been playing for 12 months but have a contract in place that exceeds the two year minimum then this could be considered.
As income can fluctuate from year to year depending on bonuses, external sponsorships and performance the lender prefers to see two years of income statements or your contract to confirm you will be able to make repayments on your loan.
Do the banks take into consideration sponsorships, endorsements or bonuses?
Yes, like anyone who receives bonus payments that may or may not be regular the lenders are able to consider all forms of income. The more consistent the income, the better it is for you from a lending perspective.
You’ll need to provide copies of any contracts or offers in writing for the bank to be able to take this income into consideration.
Needs to be in tax returns and regular.
Can overseas income be included?
A number of athletes may move overseas to work or receive sponsorship and endorsements in foreign currencies. Foreign income can be included on a case-by-case basis and will depend on what currency you are being paid in and again, needs to be on your tax return.
Entourage has a good deal of experience working with individuals with foreign income. We are very familiar with getting loans approved favourably for applicants with overseas income.
How do I apply?
Applications are easy and for the most part completed online. You can commence your application by clicking the button below or give the office a call on 03 9421 1651 or you can book a time to speak with a broker directly here.