Can I get a mortgage even if I work for my family?

Any general questions you might have in regards to loans and finance.
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Otto Dargan
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Re: Can I get a mortgage even if I work for my family?

Post by Otto Dargan »

Hi rage, welcome to the forums.

Even if you work for your family, you may be able to get a home loan.

Some lenders will require you to provide a Notice of Assessment (NOA) soto approve your loan. The Australian Taxation Office prepares the NOA. This official government document shows your taxable income for the last financial year.

If you’re not able to provide NOA then you’ll need to provide at least one of the following documents in order to have a better chance of qualifying for a home loan:
  • Payslips for the last 3-6 months. Bear in mind that these need to be computer generated payslips. Handwritten payslip documents may not be accepted.
  • Bank statements of up to 6 months. These statements must be showing salary being deposited into your account.
  • Group certificate or PAYG payment summary showing last year’s income. This too must not be handwritten.
  • An employment letter that confirms your income, tenure of your job as well as the date of appointment.
Please note that an employment letter may not be acceptable to all lenders. Instead of an employment letter, you may provide additional documents such as bank statements and tax returns since they’re more favoured due to their reliability.

If for any reason you’re unable to provide enough evidence of your income then you may not be allowed to borrow more than 80% of the property value.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Can I get a mortgage even if I work for my family?

Post by Otto Dargan »

Hi rage,

If you don’t have any payslip documents, you may try to take out a no payslips home loan. However, you’ll still need to provide some other documents in order to provide evidence of your income.

If you don’t have any payslips, your lender may accept one or more (according to their discretion) of the following documents as your income evidence:
  • Your group certificate for the most recent year.
  • Your tax returns for the last year.
Your borrowing capacity will be determined by the type of documents that you provide to verify your income. If you provide:
  • An employment letter only then you may borrow up to 80% of the property value.
  • A group certificate only then you may borrow up to 80% of the property value.
  • Tax returns only then most lenders may not let you borrow more than 80% of the property value.
  • A notice of assessment only then your borrowing capacity may be capped at 80% of the property value.
  • Salary credits only then you may be able to borrow up to 90% of the property value. If you can prove that you’re a strong applicant with a good income and low risk overall then some lenders may let you borrow up to 95% of the property value.
  • Two or more of the above documents then you may be able to borrow up to 90% of the property value. Some lenders may let you borrow up to 95% of the property value if you can prove that you’re in a strong financial position.
If you’re unable to provide any form of evidence to support your income then your loan application will likely be rejected outright.

If you want to learn more about this or if you want to check out any alternate options then you can have a look at our website. You can also speak with one of our credit specialists by calling us on 1300 889 743 or by filling in our free assessment form and waiting for one of us to contact you.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Can I get a mortgage even if I work for my family?

Post by Otto Dargan »

Hi randomuser,

Since you’ve used a lot of the online calculators that are up there in different websites, you’ve found out that they are either unreliable or wildly inaccurate. This is because most of the other online calculators only perform a general assessment of your income and expenses.

This means that the other online calculators don’t use the methods of borrowing power calculation that banks and lenders use. To get a more accurate and reliable estimate of your borrowing capacity, you can use the Borrowing Power Calculator instead.

The calculator is more reliable because it takes a very different approach to help you to find the most suitable loan:
  • It compares 3 lenders in a single calculation.
  • It uses the actual calculation methods that the lenders’ credit departments use.
  • It can automatically change the loan structure to work out your maximum borrowing power.
  • It takes advanced features like fixed rates, negative gearing, interest only periods as well as your family size into account.
Since its calculations are similar to that of a bank’s, it may even copy small errors in the tax rates that are used by some lenders.

However, please note that the Borrowing Power Calculator must only be used as a guide since lender regulation and policies don’t always remain the same and the calculator may not have updated the change.

You can also call our office to learn more about the results and how you may be able to increase your borrowing power.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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