IT consultants are one of the highest paid professionals in Australia.
Despite this, lenders can be very conservative when approving IT consultant home loans because they typically work under a short-term contract.
Because of this, lenders are concerned that IT consultants may not be able to keep up with their mortgage repayments.
Discover which lenders take a common sense approach to IT consultant home loans.
How much can I borrow?
As long as you can provide the right income evidence and you meet all other standard lending criteria, IT consultants may be able to:
- Borrow up to 90% of the property value: This extends to self-employed IT contractors as well, subject to meeting specific lender requirements.
- Borrow up to 95% of the property value: You’ll have to be in a strong financial position and must have been in your current job for at least 6 to 12 months.
- Borrow up to 100% of the property value plus stamp duty with a guarantor loan.
Speak to a member of our team today on 1300 889 743 or complete our free assessment form and find out how we can help you obtain an IT consultant home loan!
95% Home Loans, No LMI
A lender on our panel is offering waived LMI on a 95% home loan for IT professionals.
There is no minimum income requirement.
To qualify for no LMI on a 95% home loan:
- Buy a residential property (only Category 1 and 2 locations accepted)
- Hold a university degree from Australia or overseas.
- Be an Australian citizen or permanent resident living and working in Australia.
- Be employed as an IT professional and not on probation.
- Have PAYG income in the industry for at least the last three years; doesn’t all have to be with the same employer but you must be past your probation period.
- Minimum credit score required.
- If self-employed, you need a minimum of two years’ tax returns and full financials; ABN must be registered for at least two years and you must provide evidence of reported profit each year.
- The maximum loan amount is $1 million.
How do I get approved?
In order to qualify for an IT consultant mortgage, most lenders will ask you for specific evidence to prove your income, usually payslips and your last two years’ tax returns.
Luckily, some specialist lenders offer low doc solutions and may consider your home loan application even if you can’t provide your tax returns for the last two years. However, you do need to provide at least one of the following documents as alternate income evidence for your income:
- Tax invoices from the last 3 months.
- Bank statements from the last 3 months showing regular salary credits.
One thing most banks will also usually ask for is a letter from your employer confirming that you’ll be working for them as an IT contractor for the foreseeable future. This helps address the lenders’ concern over the stability of your employment.
What if I’ve just changed jobs?
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.
We may be able to get you approved for an IT consultant home loan even if you’ve only been working in your role for a day!
Give us a call on 1300 889 743 or fill in our free assessment form to see if you qualify for an IT consultant home loan.
What do I need to do if I’m self-employed?
If you’re not employed by the business you’re contracting to and are invoicing them instead, unfortunately, you’ve got to go through a few more hoops.
Most lenders require self-employed IT consultants to be in their current role for at least two years before they apply for a mortgage and supply two years tax returns as evidence.
We know lenders that take a much more common sense approach when it comes to the job stability of self-employed IT contractors and can rely on things like:
- Bank statements
If your pay fluctuates significantly then you may also need to provide evidence of at least a 12 month employment history.
For one of our lenders, self-employed IT consultants are eligible to borrow up to 90% of the property purchase price if they:
- Only contract to one main employer.
- Work for an hourly or daily rate.
- Have no staff other than themselves.
- Have no major expenses.
Our mortgage brokers have a strong track record in getting home loan approvals for IT consultants thanks to strong relationships that we have with our panel of lenders.
Call us on 1300 889 743 or fill in our free assessment form to discuss your situation today.
Are any discounts offered?
You won’t be punished for being a low doc borrower!
Can I get a home loan if I have bad credit?
There are specialist lenders that are flexible with their lending requirements and will consider low doc borrowers, like IT consultants, even if they have a bad credit history.
You may still qualify for an IT contractor mortgage!
Specific requirements apply so please get in touch with one of our low doc bad credit specialists by completing this free assessment form.
Can I take out a business loan?
Yes, IT consultants can take out a business loan but the interest rates for a business loan tend to be higher than that for a home loan.
However, if you’re buying a residential property for a business loan, then you can avoid these higher costs by choosing a lender that doesn’t refer you to their business banking department.
Most lenders will require you to pay Lenders Mortgage Insurance (LMI) if you’re borrowing more than 60% of the property price.
For more information on IT contractor business loan or to help you find a suitable lender, please contact us on 1300 889 743 or fill in our free assessment form.
Why do banks have a problem with IT consultants?
Lenders want to see that you’re in a stable employment and that you can keep making your mortgage repayments without any hardship.
Lenders think that an IT consultant may not be able to pay back the loan due to job instability and fluctuating income.
What most lenders don’t take into account is the ever increasing demand for IT contractors by Australian employers across many industries.
At the same time, companies are outsourcing their staff, especially IT consultants, in order to become more efficient.
Many banks actually do the same thing with their IT departments yet they somehow still don’t support lending to IT consultants!
Luckily, our mortgage brokers are contractors like you, and know exactly how to present your loan application to lenders that focus on the strengths, not the weaknesses, of your application.
How can a mortgage broker help me?
Our mortgage brokers understand that IT consultants:
- Tend to enjoy higher than average incomes.
- Tend to get consistent pay.
- Tend to have minimal expenses because they’re mostly covered by their employer.
By choosing the right lender, you’ll have a better chance of getting approved, so call us on 1300 889 743 or complete our free assessment form to discuss your situation with us today.