It’ is true that banks consider an agency worker or temporary employee a higher risk than a full time permanent worker. If you are an agency worker then you may find that their guidelines are designed to stop you from getting a loan.
Generally, lenders tend to decline your loan if they simply see your payslips with a recruitment agency’s letterhead. However, we know they aren't right in thinking that all agency and temp workers are the same!
If you have not even been working for a year then some lenders may not understand that you may be in a strong financial position and may be able to support a loan.
The banks think that agency workers often choose to work through an agency to earn a higher income or to get a fresh job every few months. The first part isn't the issue for the banks - it's the fact that you're switching jobs regularly. Banks want stability in their borrowers!
Luckily, few lenders can approve your home loan on basis of your three-month job history rather than the standard 12-month requirement, as long as you have a track record of study or employment in the same field of work or industry.
If your income is:
- Stable or regular, e.g. a fixed weekly salary, then you may be able to get a loan if you have been in your job less than 12 months.
- For fluctuating income you'll generally need to have a three-month track record. This is to allow the lender to complete an annualised Year To Date assessment of your income.
If you'd like to discuss this with one of our mortgage specialists directly then you can call 1300 889 743.
We can help you build a strong case with the right lender.
Cheers,