It can be difficult to get a home loan if you are a casual employee. Many banks will reject your loan application if you are a casual worker. These banks are concerned that your income may decrease or cease without warning.
However, if you are a casual employee you may still be able to get a home loan. There are some lenders that will provide home loans to people who work on a casual basis.
A casual employee applying for a home loan will need to demonstrate to the lender that they are likely to be able to make the loan repayments.
Some lenders believe a casual employee’s income is highly variable and there is a risk that it could decrease without warning. Other lenders understand that employees with a stable job history may be able to meet the loan repayments and are willing to lend to people on a casual wage.
You may be able to borrow up to 90% of the property value. If you have been in the same job for 6 to 12 months, and have a strong application you may be able to borrow up to 95% of the property value.
All types of casual employees may be able to get a home loan, including:
As long as your income is taxed and you can show evidence of your income you should be suitable.
You must have been in your current job for at least 3 months.
If you have a long work history in the same line of work you may be able to get a home loan if you have been in your current job for less than three months.
The way that lender calculates income can vary widely.
If you are a casual employee, most lenders require your group certificates for the last two years. Usually the lender will use the lower income of the previous periods when assessing your ability to repay the loan. If you are unable to show the past two year’s group certificates from your current work you will not be able to borrow from banks that assess casual employees in this way.
Some lenders use the Year To Date (YTD) gross income shown on your payslip to calculate your annual income. However, you will still need to be in your current job for at least 3 months.
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