1 year contract from a new company, is it possible to get home loan?

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longchuai
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1 year contract from a new company, is it possible to get home loan?

Postby longchuai » Tue Jun 11, 2019 11:11 pm

Hi everyone,

It would be great if you can shed a light on my situation. I am a cyber-security consultant and have got 1 year contract from a company, which is relatively new, about 10 months old. My saving is already about 400k, and would like to borrow about 150k. Is it still possible to get a home loan then, or the employer must be a well established company?

Thanks

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Otto Dargan
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Re: 1 year contract from a new company, is it possible to get home loan?

Postby Otto Dargan » Fri Jun 14, 2019 5:42 pm

Hi longchuai,

Yes, it's possible for you to get a home loan. Typically, the status of a company is not factored in by a lender when assessing a home loan application.

Having said that, even though IT consultants are one of the highest paid professionals, lenders are very conservative when assessing IT consultant home loans as they typically work with a short term contract.

When you just change jobs, even if you’re an IT contractor, you’re employed on a probation period. Most banks may not consider you eligible to apply for a home loan until the probation period has ended.

Luckily, not all banks have the same policy. If you’re employed on a contract basis, having at least two years of experience in the same line of work means you can qualify for a loan with some lenders.

As you have a substantial deposit of $400,000 and are only looking to borrow $150,000 your loan to value ratio (LVR) of 27.7% is low, it strengthens your application.

The key is to apply with the right lender and get the best deal.

Speak with one of our specialist mortgage brokers by giving us a call on 1300 889 743 or fill in our free assessment form to get the best deal from our panel of almost 40 lenders.
Otto Dargan
Mortgage Broker
P | 1300 889 743
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