Mortgages for all types of workers!
Have you just finished university and landed your dream job for a large company? Are you self-employed and doing something you’re passionate about? Or are you an important part of your family business?
Australia has a variety of employment types to suit everyone’s lifestyle, skills and education and there are loans available for people in all types of employment.
What most people don’t realise however is that with certain lenders the type of employment they choose can greatly affect their ability to get a loan.
Having a job and a good income is not always enough. How long have you been working? What type of work and on what basis? These are questions the banks and lenders will often ask, with requirements varying from lender to lender.
What does this mean? Depending on your job, it may be hard for you to verify your income and prove that are you capable of repaying your loan. Read on to find out how you can find a lender that will accept your current employement situation.
But why do the banks care about my employment?
Many people often ask why the banks are so concerned with employment when it comes to approving your mortgage. It is commonly argued that the banks have security in the form of the house that you purchased; therefore it is irrelevant what type of job you have. However, this is not the case. Read on to find out more!
Do you have a property in mind? Don’t waste time looking for lenders yourself. Mortgage brokers work with many different lenders and have already done the research themselves! Call us today on 1300 886 115 or enquire online and find out how we can help you!
How does my job affect my ability to get a loan?
Employment is very important when banks consider whether or not to lend. This is because lenders and banks only lend to the best quality applicants. Through their experience, they know that those that are employed on a contractual or casual basis may have difficulty repaying their loan due to employment instability.
Banks are very quick to profile applicants and if they have had trouble recovering payment from people with the same employment situation as you, they are less likely to approve your mortgage application.
Standing in the banks shoes
Banks and lenders are under all sorts of regulations and governing bodies. It is their duty to engage in responsible lending practices. This is why they have strict guidelines and requirements, related to borrowing.
If banks were to overlook the importance of employment, they may end up lending to persons without a steady income, who are therefore unable to repay the loan. This is why your employment situation is highly relevant to the banks. It is a reflection on your ability to honour your loan agreement.
What makes a quality borrower?
Whether you are working on probation, a contractual basis or doing shift work for cash at a local café, it is your established working history and experience in your field that the banks are interested in. Despite the possibility of an unusual employment type, or work in an uncommon industry, banks are largely concerned with your working history.
So I can get approval?
If you have a record of long service in your industry, whether as an employee of a company or in your own business, the banks will look more favourably upon you.
What criteria do the banks use?
In assessing whether to approve you for a mortgage, the banks consider the following:
How long you have been in your current job: banks prefer it if you have been working in your job for two years or more. Showing that you have been committed to your current employer assures the banks that your employment situation will continue to remain stable.
If you have remained in the same industry: If you are in the same industry but have changed employers, banks still find this acceptable, as long as it is career progression.
Whether you are on a probationary period
Any unexplained periods where you have been unemployed: banks may require an explanation of why there are gaps in your employment
If you meet this criteria it may be easy to get approval! Enquire online or speak to us today on 1300 886 115 to discuss your situation with an expert mortgage broker.
What if I don’t meet these requirements? Are the banks flexible?
Not everyone fits neatly into the lending criteria! Those working on a contractual basis commonly have gaps between jobs and self-employed persons may have difficulty evidencing their income.
If you feel that your job may be a hurdle to getting a loan, speak to us today! We know of lenders that are more lenient and will still grant you approval, regardless of your employment type.
Why do I need a mortgage broker?
When most people apply for a loan they usually submit their application with a lack of understanding as to what the banks are really looking for. Sometimes your employment situation can hamper your efforts to secure a mortgage. That’s why a broker will help you apply with the right lender to maximise your chances of approval.
Brokers also work with more than one lender. By having them appraise the application for you, they will chose the lender with the best value mortgage that will most likley be approved. More lenders equals a greater chance of approval, and the potential of saving thousands of dollars, compared with submitting to a single lender youself.
Contact us today!
We are the experts in unusual home loans! Our experience with all employment types means that we have quite probably seen a situation like yours before! We know how to formulate your application in the best possible light, to ensure that you receive a competitive and attractive loan package.
So if you’re not sure how the banks will view your employment situation, give us a call today or enquire online to get in touch with our brokers.