Home loans when you’re casually employed
You might think it’s impossible to get a home loan when you’re a casual - but not so!
Still, unfortunately, it’s true - a lot of lenders will baulk at requests from these types of workers due to the perceived risks compared to permanent employees.
Nevertheless, we’re going to run through some ways to get your approval if you’re casually employed.
What home loans are available for casuals?
You’ll find lenders that are willing to give a casual home loan under certain circumstances. At OzBroker, we can work with:
- Full time casuals - that work the same hours every week and as long as they’ve been in their current job for three months.
- Part time casuals - those working irregular hours need to have been in their current job for at least six months.
Yes, it can be hard to get approval - your wage might differ from week-to-week or you could be working across different departments, all of which may confuse or cause a bank some doubt.
That’s where OzBroker can help you gain clarity and, from there, approval.
Which banks offer the best loans for casual workers?
The ideal home loan really depends on your personal circumstances. Again, this is where OzBroker can help you determine which bank is the best for your needs.
We work with a number of banks and lenders that will consider your home loan application while you’re working casually. We can even look for approvals for those who have been working casually for under six months.
How casuals can get a home loan approved
Different banks will have their own ways of working out your eligibility - and your casual income. In general, a lender will ask to see documents such as the following:
- Bank statements indicating three months’ salary income.
- A payslip indicating more than three months Year to Date income.
- An official letter from an employer with your current employment status including income and PAYG summary.
- A group certificate.
The huge variety of casual work out there - including teaching and nursing casuals - means that it’s hard to give a definitive pathway to approval.
However - very broadly speaking - if you can demonstrate reliability, some consistency and longevity in your current working situation your chances will be greatly improved.
Here’s a case-study: one of our clients came to us asking for help securing a loan - and presented these personal circumstances:
"I’m a teacher working for the Department of Education at a primary school in a casual capacity - and have been doing so for about 2 years while looking after my 2 young kids. My tax return from the last year was about 22k. I didn't work during the school holidays. My husband is working full time with 72k income pa. We are looking at buying a property for about 700k with a 100k deposit. Is this possible?"
In this example, having worked for two years at the one school strengthened the application because it showed consistency and low risk as a teacher. We ended up annualising her last 6 months of her income of about 28k to get the approval. As a result they absolutely qualified for a home loan based on their situation.
For more information, please contact us here at OzBroker. We’ll be able to help you through all of the various complexities of the application to make sure you have the best chance of getting that loan.