Can a Casual Employee Get a Home Loan?
Demystifying the Home Loan Process
Many people, in the current economy, are able to do no better than casual employment. While it’s great to have a job at a time like this, compared to the alternative, it can play games that aren’t very fun at all with how good you look on paper to lenders.
Unfortunately, in many cases with lenders it does come down to what you can verify on paper and what the risks look like for them. Banks today are paying the price of all the easy loans they handed out a few years back. Lenders have long memories and aren’t quite ready to jump back in and risk repeating the same lending mistakes they made so recently by giving loans to people who may not have really been prepared mentally, emotionally, or financially to repay them. That is why it is so difficult today for casual employees to get mortgage approval.
What are Your Options as a Casual Employee?
It’s always wise to explore your mortgage options when you have casual employment. Some lenders are more willing to absorb the risk completely while others have stipulations that will cushion their risk to some degree. These will be no means be easy loans to get approval for. But, they are a starting point that is well worth considering if you’re not seeing any more “stable” employment in your near future.
What are some of the options you might want to keep in mind? First you can work a little harder and longer to come up with a larger deposit. Many lenders are more willing to offer a 90% LVR in this lending climate than they are to offer a 95% loan. These loans might seem to be very similar at first glance but when you get all the zeroes in the right places it makes even more sense.
Remember that lenders won’t allow casual employees to calculate their annual income figures by including overtime. They’ll work only on your base rate and however many hours work each week your employer is willing to guarantee you.
The only way around this is to provide two full years worth of tax returns and a couple of recent pay-slips showing that rotating shifts or regular overtime are a normal part of your working conditions. This doesn’t necessarily mean you need to be in the same position for that entire two years, as long as you can prove you remained in the same industry and were consistently employed throughout that time.
How to Turn the Tides in Your Favour
There are some things you can do, despite casual employment that will have a favourable impact on whether or not you get mortgage approval. These are just a few of the things you may want to consider to help you feel as though the loan you get for your home is one of those easy loans you’ve been hearing about.
You can have your employer write a letter to your lender that you may be a casual employee but that you do work regular hours every week so that you can depend on a certain amount of income from your work situation. This will make your prospects for being approved for loans of any kind, especially home loans, much better in your employment situation.
The good news for most people in your situation is that casual employment for more than two years at any one location is considered to be a favourable sign by most lending agencies in the mortgage industry. This means that you won’t have to jump through quite as many hoops. These still are not exactly easy loans but they are much easier to get than they would be without at least that much of a history as a casual employee.
You may compare the basic variable home loans to find out the best one for your needs.
Related posts:
- Home Loan for the Newly-Hired Employee
- Home Loans for Those Who Do Not Work 9 To 5
- Your Employment History Makes A Great Difference On Your Home Loan
- Home Loan For People With No Payslips
- Can Self Employed Workers Get A Home Loan?
- NAB Home Loan Pre-approvals Advice
- 95% Loan to Value Ratio Loans for Your Home
- Home Loan – 20 to 30 Year Fixed Rate
- Home Loan For Dual Occupancy Homes
- Is Home Ownership Possible with a Low Doc Home Loan?
Top Home Loans
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 Loans.com.au - Dream Catcher | A home loan offer with a $0 application fee and one of the lowest available home loan interest rates. | 5.85% | 6.21% | $0 / $375 | 80% | $50,000 / $750,000 |
 
|
 Bankwest Online Home Loan | A low interest rate home loan with a $0 application fee and ongoing maintenance fees. This offer is exclusively available by applying online. | 5.97% | 5.97% | $0 / $0 | 80% | $100,000 / $1,000,000 |
|
 State Custodians Mortgage Company Standard Variable Offset Loan | Awarded Mortgage of the Year 2012 – this multi-award winner features 100% offset and a loyalty 0.25% rate drop after 5 years. | 6.02% | 6.23% | $0 / $345 | 95% | $150,000 / $1,000,000 |
|
 Illawarra Home Loans Bank Beater Home Loan | A low variable rate, beaten down even further by 0.05% p.a. after 5 years. | 6.07% | 6.35% | $0 / $345 | 90% | $250,000 / $1,000,000 |
|
Ask A Question