Casual employment home loan

How to get a home loan as a casual worker

Many Australians work in industries such as hospitality where it is normal to be casually employed. Of course the credit departments of banks are full of full time employees, what do they know about being casual? Not much! And it shows in their lending guidelines.

Read on to find out how the banks think and how to show them your loan application should be given the stamp of approval!

Do you qualify for a home loan?

How long have you been in your job?
Was your previous job in the same line of work?
How regular are your hours?
What % of the property value are you borrowing (LVR)?
Do you have 5% in genuine savings?

How can you get approval?

If you are a casual worker it may be difficult for you to obtain a mortgage based on your current employment situation. To the banks a casual employee is someone with a fluctuating income. If your income fluctuates how can the bank be sure that you’ll make your next mortgage repayment? If that wasn’t bad enough lenders also think that if your employer was to lay off staff that you as a casual employee would be the first to go!

Of course this isn’t always the case, this is just how a credit assessor sees it. It’s our job to make them see the truth, not the guidelines, and to get your loan approved.

We work with lenders that understand that many Australians are now casually employed, and consequently we are often able to get your loan approved when other brokers and lenders have failed. Enquire online or call us on 1300 889 743 to speak to a specialist mortgage broker.

How do lenders calculate my income?

Each lender has their own method of calculating the income of loan applicants that have a casual job. Most lenders want to see your last two years group certificates and then they take use the lowest years income. Because of this method of assessment they are unable to lend to casual employees that have not been in their job for several years.

Other lenders use the Year To Date (YTD) gross income shown on your payslip to calculate your annual income. This method is used by lenders that accept casual employees that have only been in their job for a few months. You can use our Year To Date Income Calculator to work out your assessable income.

Lenders use these methods because your income may fluctuate from week to week. If they just use the income that you have received in your last few payslips then their assessment will be inaccurate.

Which lenders can help?

Casual home loans banks are more helpful then securitised non-bank lenders. Non conforming non-bank lenders may also be able to help with your finance application. Enquire online or ring 1300 889 743 to talk to a specialist mortgage broker who knows which lenders can approve your home loan while you are casually employed.

Some of our lenders can accept people who have been casually employed for as little as 3 months!

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 90% of the property value. If you are in a strong financial position and have been in your job for 6 to 12 months then we may be able to help you with a 95% home loan.

What can I use the loan for?

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

Who this loan is for?

All casual employees are accepted including normal casual employees with fluctuating hours, permanent casuals, casual teachers, casual nurses or people who have multiple casual jobs. You must have been in your job for at least 3 months or have a track record of employment in the same line of work or in the same industry.

Who should not apply?

Self employed and low doc borrowers cannot apply for a casual employment home loan.

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.

Talk to a mortgage broker that specialises in casual employees

We are specialists in lending to casual employees and so can quickly work out which lender is the most suitable for your situation. Enquire online or call us on 1300 889 743 to speak to a casual employment loan specialist.

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.