Second job home loan

Help my bank is ignoring my second income!

Do you have a second job, third job or even multiple jobs or income sources? If so then you will find it difficult to convince your bank to assess your full income from all of your jobs. As a result you may be told that you “don’t earn enough”, “can’t be working part time” or that you “don’t meet bank policy” and your loan may be declined.

If you really think about it, this bank policy makes no sense at all, people with multiple income sources and career options have a stable and diverse source of income so are actually a lower risk to a bank! Read on to find out how to get your loan approved…

How much income will the bank accept?

Most banks will only accept income from an additional job if you have been in that job for 12 months and are not working over 60 hours per week in total. Even then they are likely to accept only 50% of your income from your 2nd job. If you have multiple jobs (more than 2) then they often ask for your tax returns and average the income received over the last 2 years.

Our best lender for 2nd jobs can accept 100% of your income from all of your jobs as long as you have been employed for at least 3 months. If you have not been employed for 3 months they can sometimes consider income from brand new jobs if you have an excellent credit history.

How much can I borrow?

With our best lender you can borrow up to 95% of the property value if you have multiple income sources. This is incredible when compared to most lenders who can only approve loans for less than 80% of the property value for people with a second job or who will decline the loan outright!

Why are the lenders so conservative?

Australian banks are conservative when assessing home loans for people with multiple jobs because they believe that their income is more likely to fluctuate and that their employment prospects are far less stable. In our experience people with several jobs are hard workers, are motivated to save a deposit for their home and are far less likely to run into financial hardship when repaying a mortgage.

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Here at the Home Loan Experts our mortgage brokers have extensive knowledge of the guidelines used by Australian lenders when assessing your income. Please enquire online to discuss your situation with a mortgage broker.