Contract employment home loan

How contractors can get home loans!

With a labour shortage gripping Australia many people have taken the leap into contract employment to secure better pay. At the same time more companies are outsourcing departments & staff to become more efficient. Lenders often outsource their staff but strangely enough don't seem to understand or support lending to contractors!

PAYG contractors are employed on a fixed term, short term or long term contract, usually with an end date or in some cases with an automatic roll-over to a new contract. They receive normal holiday & sick leave benefits while also having their tax withheld and super paid for.

Self employed contractors are usually sole traders with a registered ABN who invoice their employer and then pay for any expenses such as their own wages from their business's income.

Both types of contract workers are treated differently by the banks, read on to find out more...

What do lenders think?
Which lenders can help?
Which loan types are available?
How much can I borrow?
What can I use the loan for?
Who this loan is for?
Who this loan is not for?
Discounts
Loan features
Notes

What do lenders think?

Contractors are typically treated like casual employees by the banks. They are considered to be in a very unstable employment arrangement with a high chance of having their contract cancelled. PAYG contract workers usually have great trouble applying for a loan unless they can prove a strong track record of experience in the same industry and prove that their future employment is stable. However one of our banks can consider lending to people employed on a PAYG contract with normal home loan rates even if they have only been one day in their job!

Self employed contractors are usually treated by banks as normal self employed borrowers, meaning they need to be in their current role for two years before they can get a loan. One of our lenders now treats self employed contractors that just contract to one main employer and have just one staff member as PAYG, making borrowing money far easier!

Mining contractors are a special case because they earn some of the best salaries in Australia however may have fixed term employment contracts or may move between mines depending on the availability of work. One of our lenders can approve mine worker home loans by taking a common sense approach and acknowledging that most workers can easily find alternative employment in the event that their contract is not renewed.

The secret to getting a home loan while working as a contractor is to apply with the right bank!

Which lenders can help?

Contract worker home loans are usually sourced through banks that specialise in self employed borrowers. Non conforming non-bank lenders may also be able to help. Talk to us to see which banks have the best deals for contractor home loans.

Which loan types are available?

All loan types: Professional packages, basic loans, lines of credit, fixed rates.

How much can I borrow?

You can borrow up to 100% of the property value using a bank loan depending on what type of employment contract you have with your employer.

What can I use the loan for?

Home / domestic use, investing, purchases, mortgage refinances and construction are all acceptable loan purposes.

Who this loan is for?

PAYG contract workers / contractors or self employed contractors that have only themselves working in their own business and who contract to one main employer / client. Low doc is available.

Who this loan is not for?

Contract workers with job instability or fluctuating income. If your income fluctuates you may need to show a track record of two years income which can then be averaged for the bank to assess.

Discounts

Professional package and basic loan discounts are available.

Loan features

All loan features: Interest only, fixed rate, line of credit, 100% offset, redraw, extra repayments.

Notes

Contract employees usually have a high chance of getting their loan approved if the loan is submitted to the right bank. We are experts in this field and would love to help you buy a home or get a better interest rate by refinancing.