How to Get a Home Loan with Unusual Employment or Income
Many home loan applicants have found that their bank is apprehensive towards them and it is because of their irregular working hours. They don’t seem to fit into the strict lending guidelines set out by banks and they are not seen by banks as holding down a stable employment with regular income.
A Non Conforming Lender will be familiar with the lending guidelines and credit policy requirements of a number of non bank lenders/credit providers who will accept Unusual Employment and Income with a Near Prime Loan.
What are the Common Unusual Employment and Income Types?
Below are some of the common unusual employment and income types:
PAYG contractors are employed via an agency or directly via their employer. This form of employment is now common in a variety of fields such as:
You will be required to provide a copy of your most recent “Employment Contract”, with income details listed and you will need to provide evidence that you have had employment in the same industry and that you have a good track record in your chosen industry.
You will need to provide evidence that your employer or employment agency takes care of your income tax and superannuation contributions for you and show copies of latest pay slips.
Note: If you are not on the direct payroll of an employer or employment agency, you may be treated as being self-employed.
Type 2 – Casual Workers or Second Job
This type of employment applies to people working on a casual basis in the following industries:
Type 3 – Part-Time Employees or on Probation
If you are employed on a part-time basis or on Probation you will find that non bank lenders/credit providers will generally require you to:
You are categorised as self-employed individual when you are paid through your ABN even when you are conducting freelance work as a journalist, photographer, tour guide, etc. In such a situation, you will find that most Banks will require you to provide evidence that you have a regular income to sustain a loan. This includes providing evidence that you are a business owner or partner and you have been trading in your current business for at least 24 months.
For a Prime Bank Loan you will be required to provide copies of your most recent Personal and Business Income Tax Returns and business financial statements, reflecting two (2) years trading activity.
For a Non Prime Bank Loan you have a Low Doc Home Loan option for Self Employed Australians where you can supply a declaration of income with either:
Type 5 – Sub-Contractors
Sub-contractors have specialized skills and they are generally employed by a primary contractor to provide specialized services in a variety of fields such as:
Type 6 – Other Forms of Income
If you receive other forms of income and you are unsure if it is acceptable you should seek help from a Specialist Mortgage Broker. These other forms of income can include:
If you still have doubts regarding your employment status and want to obtain a Home Loan you can seek help of an experienced mortgage broker or Non Conforming Lender because they will have experience of dealing with many non bank lenders/credit providers on a regular daily basis.
A Non Conforming Lender will be familiar with the lending guidelines and credit policy requirements of a number of non bank lenders/credit providers who will accept Unusual Employment and Income with a Near Prime Loan.
What are the Common Unusual Employment and Income Types?
Below are some of the common unusual employment and income types:
- PAYG (pay-as- you- go) contractors
- Casual workers or Second Job
- Part-time workers or on Probation
- Self-employed individuals
- Sub-contractors
- People with other forms of income
PAYG contractors are employed via an agency or directly via their employer. This form of employment is now common in a variety of fields such as:
- Medical
- Teaching
- Engineering
- IT (Information Technology)
- Mining
- Project Management
- Construction
- Government
You will be required to provide a copy of your most recent “Employment Contract”, with income details listed and you will need to provide evidence that you have had employment in the same industry and that you have a good track record in your chosen industry.
You will need to provide evidence that your employer or employment agency takes care of your income tax and superannuation contributions for you and show copies of latest pay slips.
Note: If you are not on the direct payroll of an employer or employment agency, you may be treated as being self-employed.
Type 2 – Casual Workers or Second Job
This type of employment applies to people working on a casual basis in the following industries:
- Restaurants
- Retail
- Teaching and Tutoring
- Nursing
- Childcare
- Trades
- Drivers
- Cleaners
Type 3 – Part-Time Employees or on Probation
If you are employed on a part-time basis or on Probation you will find that non bank lenders/credit providers will generally require you to:
- Provide evidence that you have been employed at your current employment for at least 6 months
- Provide copies of a computerised pay-slip covering a minimum of two (2) pay cycles in order to confirm details of your base income and a signed letter of employment from your employer listing details of your current base-remuneration.
You are categorised as self-employed individual when you are paid through your ABN even when you are conducting freelance work as a journalist, photographer, tour guide, etc. In such a situation, you will find that most Banks will require you to provide evidence that you have a regular income to sustain a loan. This includes providing evidence that you are a business owner or partner and you have been trading in your current business for at least 24 months.
For a Prime Bank Loan you will be required to provide copies of your most recent Personal and Business Income Tax Returns and business financial statements, reflecting two (2) years trading activity.
For a Non Prime Bank Loan you have a Low Doc Home Loan option for Self Employed Australians where you can supply a declaration of income with either:
- Accountants Declaration of income
- 6 months of lodged BAS statements
- 6 months of Business Bank statements
Type 5 – Sub-Contractors
Sub-contractors have specialized skills and they are generally employed by a primary contractor to provide specialized services in a variety of fields such as:
- Building and Construction
- Mining
- Civil Engineering
- IT (Information Technology).
Type 6 – Other Forms of Income
If you receive other forms of income and you are unsure if it is acceptable you should seek help from a Specialist Mortgage Broker. These other forms of income can include:
- Centrelink payments and Pensions
- Commissions and Bonuses income
- Trust Distributions income
- Car /Shift and other Allowances
- Annuity Income from Superannuation
- Director’s fees
- Second Job income
- Investment income (i.e. Dividends received from publicly listed companies)
- Child Support Court Ordered Maintenance payments
- Salary Sacrifice
- Foster Care Income
- Superannuation Income (Pension or Annuities)
- Trust Distributions
- Oversease Income
- Maternity Leave
If you still have doubts regarding your employment status and want to obtain a Home Loan you can seek help of an experienced mortgage broker or Non Conforming Lender because they will have experience of dealing with many non bank lenders/credit providers on a regular daily basis.
