Agency Worker Mortgage

Although most people are employed directly by a company, agency workers are employed by an agency and matched with an employer. This gives you more freedom to explore a variety of employers using your skill set. It may suit your lifestyle, allow you to travel or take on other hobbies.

However, agency work ends after a fixed term. As such you may have difficulty securing future income. This is the main reason why banks may not approve you for a home loan. Don’t worry, there are some lenders that do not see agency work as an issue. To find out more read on.

What do the banks think?

If you are an agency worker your employment status might make it difficult for you to get a loan. Conservative lenders are more likely to ensure strict compliance with lending policies.

As a result, many agency workers endure stress and frustration when trying to have their employment and income recognised as stable.

Will I get approval?

As experienced mortgage brokers we know which lenders take a more flexible approach to agency workers. Some agency workers have a strong skill set and although their employment is short term, they can generally secure future employment. If you are in this situation then there is a good chance one of our lenders will approve your home loan.

To apply to the right lender first time call us today on 1300 886 115 or enquire online and one of our brokers will contact you.

Why do the banks take this view?

Unlike ordinary workers, agency workers move around from job to job and most are not permanently employed. Because of this, banks are of the view that agency workers pose a high risk of default. Due to the large turnover of workers banks believe there may be periods where you are out of work. As a result, your flow of income would be reduced and you may not be able to meet your debt obligations. However, not all banks take this view as this is not the case for all agency workers.

What do lenders look for?

Our lenders will look at your employment history, track record of employment stability and your gross income to determine whether you will be able to afford the loan. They look past the label of ‘agency worker’ and examine your individual situation, allowing them to establish whether you will be able to service the debt.

The strongest cases are those that have been working in the same job for an extended period of time, ideally 12 months.

What will I need to qualify?

If you have been working less than 12 months you may still qualify! We know of lenders that may grant you approval even where you’ve been working as little as 3 months on the job! However, lenders do prefer those who have an established employment or study history within their field.

This means that if you are on probation you may find it difficult to get approval. It is by no means impossible however, so contact us for more information! You can read our page for temporary worker mortgages as many temporary employees find a job through an agency.

What if I’ve only been in the job for one day?

We may still be able to help you, as long as you can prove that you have a fixed income. If you have been receiving irregular payments you may need to provide the lender with a year to date statement of your income.

How much will I be entitled to borrow?

Regardless of your employment situation we know of major lenders that will allow you to borrow up to 90% LVR! Where you have been in your current role for 6-12 months, you may be able to borrow up to 95% of the property value.

What is an agency worker?

An agency worker is someone that finds an employer through an agent. Once employment commences, the worker is under a contract of employment with their new employer.

The way that the worker is remunerated is one of the defining features that separate’s an agency worker from an ordinary worker. The agency will get a fee from the hirer as a result of finding the employee and the agency will then pay the employee’s wages out of that fee.

What are the terms of employment?

If you are an agency worker your terms of employment, wages and duties to be performed are generally listed in your contract which may also include a specific time frame. The work can either be temporary or permanent, however most workers will start out on a trial or probationary period before moving to full-time work if their employer is satisfied with their performance.

What industries are they common in?

Agency workers are popular in many fields including:

  • Labour industries
  • Accounting
  • Health
  • Administrative duties
  • Mining
  • Hospitality
  • Healthcare

No matter what industry you work in, we can help you! Call us today on 1300 886 115 or enquire online to find out which lender will approve your mortgage.

Advantages of being an agency worker

Agency workers often receive higher pay rates than ordinary workers! You also have the same safeguards as regular employees including award rates, the protections of unfair dismissal laws and redundancy packages. Notice periods for dismissal may also apply.

The hiring process is more simplified and signing with an agency means you will receive a job without having to endure the stressful selection process. You may also be able to negotiate hours of work and your pay package.

Disadvantages of being an agency worker

Some drawbacks include:

  • Lack of additional workers benefits such as health insurance
  • High turnover rates
  • Sometimes it is difficult to obtain a reference for your resume unless you have been working for that company as an agent for a significant amount of time
  • Lenders do not see your employment type as secure. This can negatively impact your ability to get a mortgage

Contact our mortgage brokers today!

Our mortgage brokers are accustomed to dealing with people who fall into unusual employment types. Applying for an with the right lender is essential! Call us on 1300 886 115 or enquire online to find out how we can help you get your employment mortgage approved.