Unusual Employment Loans
How you earn an income can affect your chances of home loan approval!
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If you’ve got a job and can afford a home loan, why won’t the banks help you?
With overtime, probation, contractors and agency workers with multiple part time jobs, it isn’t hard to see that most people don’t fit the banks normal rules.
Luckily, modern home loan lenders are beginning to understand that these days not everyone has a 9-5 job and not everyone can prove their income as easily as they’d like to. You can still get a home loan!
Have an unconventional job and struggling to get bank approval?
Talk to our experts to get a free assessment.
How can I get approval?
The secret to getting a lender to accept your income as true and correct is to apply with a lender that views your situation in a favourable light.
Providing the best possible combination of documents will also help to ensure that they assess you as earning a strong income.
For example, if your payslips show a low income because you’ve done no overtime in the last few weeks, provide your group certificate and a letter from your employer instead!
We’re experts in getting loans approved for people with unusual employment!
With our expertise, we can help you compare the loans offered by those lenders and get back to you with two or three loans with the most competitive interest rates and fees!
What types of employment can we help with?
We can also help in a variety of other situations and with a variety of other income types.
Do you earn unusual income?
Non-traditional or irregular income goes hand-in-hand with unusual employment depending on the industry that you work in.
This is particularly true of government jobs or sales professionals where you may receive bonus income or incentives.
We know banks that will consider the following types of bonuses or incentives when assessing your income.
The more the bank considers, the greater your borrowing power:
Why do banks care about my employment?
People commonly ask us why their employment situation matters.
If the banks have the house as security, surely this is enough to protect against any loss they incur.
What most people don’t know is that selling property is a last resort.
Most banks don’t want to ruin their reputation by engaging in irresponsible lending practices and lending to those who can’t fulfil their financial obligations.
Banks care about their brand (more than they do about you!) and as such, they need certainty that the loan will be repaid, and this is evidenced through the documentation you provide them with, in terms of your income and employment.
What do I need to provide?
Australian lenders need to have documents evidencing the income that you have put on the application form.
They meet this requirement by asking for:
How do banks assess your employment?
When you submit a home loan application, the bank will give your loan a credit score based on the overall risk that you pose.
Your employment and income stability forms a major part of this score.
Here’s what they take into account:
In addition to the above list, there are some other more complex factors that are specific to each lender.
Job Stability: Key Factor for Loan Approval
If you’re a high earner whose employment situation is subject to change, you’re probably aware that the banks may be hesitant to lend to you.
This is because banks need to be able to determine where your income is coming from.
If your employment is full-time, banks know that your income source is secure so they are more likely to lend to you.
If you have casual employment, however, there’s a strategy for winning over the banks. The secret lies in demonstrating that you have a steady flow of income from your job. Most lenders will look at:
If you are in a strong financial position and have been in your job for 6 -12 months, you can borrow up to 95% of the property value. It can go even higher if you choose to go with a guarantor.
A good credit score and relevant industry experience can open doors to loan approval, even with a short employment history or casual job status.
We know which banks will approve you based on your current employment situation.
How do banks calculate your income
One of the major problems faced by people who have an unusual employment situation is how the banks work out their income when it fluctuates on a weekly basis.
As a general rule, banks will use the most conservative method of assessing your income.
For example, if you provided two recent payslips and your group certificate and they show two different incomes then they will use the lower of the two.
Unfortunately, this means they often don’t use your actual income!
In particular, people who receive overtime income, work on a casual basis or who have received a pay rise in the last year tend to be assessed at a lower income than they are actually earning.
How can we help?
Our mortgage brokers are experts in the banks’ employment policies and in the methods they use to assess your income.
We can select the lender that is best suited to you and then present the right documents to that lender to get approval.
Best of all we usually deal with the major lenders and so you don’t have to pay a higher interest rate!
Related Topics
Tailored Lending Criteria
Lenders assess your financial circumstances holistically, considering your income stability, savings, and repayment capacity, even if your job doesn’t fit traditional norms.
Flexible Documentation Requirements
These loans often allow alternative income verification, such as bank statements, invoices, or contracts, instead of standard pay slips.
Specialised Lender Options
Certain lenders specialise in providing loans to people with irregular income sources, such as freelancers, seasonal workers, or contractors.
Customised Loan Structures
Options like interest-only loans or extended loan terms can help make repayments manageable for borrowers with fluctuating incomes.
Higher Risk Tolerance by Lenders
Some lenders are willing to take on higher-risk borrowers, including those with multiple income streams or unconventional employment types.
Expert Guidance and Support
Brokers familiar with unusual employment situations can guide you through the process, helping you find a lender that understands your unique financial position.
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