Are part time employees entitled for a home loan?

Any general questions you might have in regards to loans and finance.
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Otto Dargan
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Re: Are part time employees entitled for a home loan?

Post by Otto Dargan »

Hello Holocene. Welcome to the forums.

Australian lenders may be conservative when it comes to part time workers. In case you have a part-time job, lenders may require you to be employed longer than full-time employees and may even take less of your income into account.

You may want to apply with a lender who will use a common sense approach to assess your income for your home loan application to be approved.

Most lenders may accept only 50% of your income, granted that you have been employed for at least a year. Our select few lenders may be willing to accept 100% of your income when assessing your ability to repay a home loan.

Your lender may tell you that you can afford a good property with 50% of your income. However, you may be able to borrow more and buy a suitable home befitting your budget if you choose the right lender who may accept all your income.

You may also ask your employer to increase your working hours if it’s possible so as to show longer hours on your payslips.

Cheers,
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: Are part time employees entitled for a home loan?

Post by Otto Dargan »

Hi Holocene,

Lenders know that some employers may allow their workers to work additional hours or convert to full time to help you cope with additional responsibilities associated with buying a home. Unfortunately, they may still need a track record of the new income for at least the past six months.

Luckily, one of our lenders may be able to accept your new income given that you’re able to provide a payslip showing your higher salary and an employment letter confirming your new work hours.

However, other lenders may require you to provide them with your two most recent payslips as well as your group certificates for the last two years, if you have been working for more than three months. The requirements may vary from lender to lender.

Please call us on 1300 889 743 or enquire online and we can go through your options with you.

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

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