Can I get a mortgage while working part-time?
Are you working a part time job for lifestyle reasons?
Australian lenders are notoriously conservative when approving home loans for people working P/T.
They require you to be in your job for longer than F/T employees and may even take less of your income into account.
This is particularly true if your part time job is an additional job to your normal full time work.
The secret to getting your home loan approved is to apply with a lender that will use a common sense approach when assessing your income.
Read on to find out which lenders can help you.
How much income will the bank accept?
Most banks will only accept 50% of the income you receive from a part time job and only if you have been working there for at least a year.
There may be some lenders that will accept 100% of your income from your part time job when assessing your ability to repay a home loan.
To find a lender suitable for your situation please enquire online and one of our mortgage brokers will contact you to discuss a part time income home loan.
By choosing a lender that can accept your income you will be able to borrow more and can buy the home that suits your budget, not the one your bank tells you that you can afford on 50% of your income!
What do I need to provide?
Most lenders will require you to provide your two most recent payslips and if you have been working for more than three months, two years group certificates. However, every lender has different requirements.
To discuss your situation with an expert mortgage broker, please enquire online or call us on 1300 889 743.
Why are the lenders so conservative?
The majority of bank employees are standard full time employees that have been working in their job for many years. As a result, they often don’t understand your lifestyle choices and they are not a very good judge of the stability of your job.
The lending guidelines of most major banks are skewed towards full time employees and are often quite unfair to anyone that is “outside of the box”.
If you are working as a part timer and are concerned about your ability to qualify for a loan with the major banks, please call us on 1300 889 743 or enquire online. Our expert mortgage brokers can help you apply with the right lender, to maximise approval!
What if I increase my hours?
As a part time worker you may be able to ask your employer for additional hours or convert to full time employment to help you to cope with the additional commitments associated with buying a home.
Unfortunately even then many lenders will require at least a 6 month track record of this new income before approving your application!
One of our lenders can accept your new income as long as you can provide one payslip showing your higher salary and an employment letter confirming your new hours.
If you have recently experienced a pay rise, please call us on 1300 889 743 or enquire online to increase your chances of getting approval for a mortgage.
Can I get approved with a major bank?
Yes, we can often help you to get approval with a major bank or if you prefer, we may be able to get you an approval with a building society or credit union depending on their guidelines.
The majority of lenders cannot include all of the income from part time employees so the choice of lenders may be limited to one or two depending on how much you would like to borrow.
Apply for a home loan today!
Here at Home Loan Experts our mortgage brokers have extensive knowledge of the guidelines used by Australian lenders. Please enquire online or call us on 1300 889 743 to discuss your situation with a mortgage broker and get your home loan approved!