Modern home loan lenders are beginning to understand that these days not everyone has a 9-5 job and not everyone can prove their income as easily as they’d like to. Industries such as hospitality and performing arts industries, commonly employ workers on a casual basis but work full time hours.
With overtime, probation, contractors and agency workers with multiple part time jobs, it isn’t hard to see that most people don’t fit the banks normal rules. If you pass the lender’s criteria and can demonstrate that you can repay the loan, you can still borrow up to 95% loan-to-value ratio (LVR) in most cases.
If you’re employed casually, the banks believe that you have an unstable source of income, and so they view you as a high-risk borrower. Casual employment is also believed to have low job security, as many lenders believe that casual employees would be the first to go if an employer needed to cut back on staff.
If you’re a casual worker, the lender will consider:
• Whether or not you’ve been in your current job for at least 3 months
• Whether or not you’ve been in the same industry for at least 1 year
• The consistency of your hours
• Your loan-to-value (LVR) ratio
• Your credit history
Although a lender may be able to give you approval, you should still only apply for a loan if you truly believe that your employment is stable. Casual employment is subject to more instability so please borrow with care.
We work with lenders who understand that many Australians are now casually employed, and consequently we’re often able to get your loan approved when other brokers and lenders have failed.
Ultimately, the assessment of income is dependent on the lender you choose to set up a loan with.
For an honest and unbiased opinion or to discuss your requirements with an industry expert, talk to Think and Grow Finance today on 03 8390 5855 or email email@example.com