Part Time Mortgage

Working two jobs? Or have other obligations to meet at home? There are many reasons why people choose to work part time. Generally, it enables them to meet other commitments whilst earning an income.

Many mothers commit to part time work when there maternity leave ends and students who are attending university full time find it easier to take on fewer hours per week.

However you are still eligible to apply for a mortgage if you are employed part time. Read on to find our more!

What do the banks think?

Part time work is still a commitment to regular work, so it seems strange that the banks would treat it as inferior to full time employment. However they do!

In the banks eyes, full time work is viewed as more stable with a guaranteed flow of income. In times of economic down turn those in part time employment are less likely to retain their jobs, whereas full time employees are less susceptible to termination.

The key to approval is applying with the right lender!

Lending policies differ immensely from lender to lender. Some are more conservative in their treatment of part time employees. Others are more liberal and will allow you to include 100% of your part time income. The key to ensuring approval is applying with the right lender.

If you have a property in mind you can speak to us on 1300 886 115 or enquire online and our brokers will help you get approval!

How much part-time income will the lenders accept?

Most lenders will not accept 100% of your part time income! As a general rule, the major banks will usually accept 50% or less. However you must have been working in that same job for a minimum of one year. This may limit the amount you are entitled to borrow. So how can you ensure that you get the mortgage you need?

This can also be affected by the type of employment you have. For example a bank may look favourably upon a part time doctor relative to someone with a second job, or a temporary employee.

What is part time work?

Part time work is generally available across all industries but is most common in hospitality, retail, education, primary industries and other public and private sector jobs. Those working part time usually get the same rate and are working under the same conditions as full time employees.

They are also generally entitled to overtime pay annual leave and superannuation. Most part time employees work for small business such as cafes. In fact over half of those employed in the hospitality industry work part time!

What are the benefits?

Although full time work is more stable and the income is higher, there are many positives to working part time. It allows you to work whilst having the time to take on other projects or side jobs. There are many factors that may influence your decision to work part-time. These include lifestyle, other responsibilities and obligations such as caring for family members, education and study.

Some people find it easier to achieve a work/life balance if they only work on a part time basis. Despite the advantages, working part time may negatively affect your ability to get a mortgage. This is primarily because the banks see a part time income as incapable of supporting a home loan.

If your lender sees part time income this way, or you have a property in mind and are yet to apply you should contact us! You can call 1300 886 155 or enquire online.

Will I be able to support a loan?

Most major lenders believe that those working part time will not have sufficient income to support a loan. Some banks will not even take your part time income into account or may require you to provide evidence that you have been employed in that job for years! This can severely hamper your ability to get approval. There are also other evidentiary hurdles to overcome.

It may be difficult for you to substantiate your finances if you work part time. This is a common problem faced by those who approach us for advice on getting approval. So how can you ensure that you get a mortgage?

How you can qualify for a mortgage!

If you have strong finances and a good credit history, we know of a lender that will accept 100% or your part time income! Where you can demonstrate that you have an income stream to support a loan and that your employment will be ongoing, you may get approval.

Talk to a mortgage broker with experience!

Our team are accustomed to helping part time workers apply for employment mortgage loans. We know what lenders to approach and can help you can get the best rates and most competitive package! Enquire online or contact us on 1300 886 115.