Home loans for casual workers…yes they exist! In this day and age, casual employment is fairly typical, especially in select industries, like hospitality. Many workers around Australia work on a casual basis. So it’s no surprise that many banks and lenders now offer mortgages and home loans for casual workers.
Lance & Susanne – Happy Homeowners
Stricter Conditions for Home Loans for Casual Workers
Part of buying a home as a casual worker is that you’ll face stricter conditions from banks and lenders. This is simply because they’ll see your job as less secure than if it was full-time or permanent part-time.
As a result, you will usually need to provide additional proof, pay a higher interest rate or have a larger deposit to qualify. But, there are ways you can improve the mortgage products you are eligible for, while also being able to secure a home loan as a casual worker. Especially if you can meet the stricter conditions imposed by the banks and lenders.
Probably the most impactful change, as a casual worker you will need to show a minimum of 6 months of casual employment with your current employer to be able to qualify. This is generally considered the minimum timeframe for most lenders to consider your job as stable.
That said, if you have been with your employer for longer, that will help your application as well. To increase your chances of approval and get a better rate, multiple years of work history, proven by income statements from the ATO, will give the best result.
Have a Deposit
As with regular home loans, a deposit is a fantastic way to increase your approval chances and reduce your repayments. Banks look favourably upon anyone who can bring a 20% deposit. But don’t worry if you don’t have the full 20%. Thanks to lenders mortgage insurance (LMI) and Darren’s no or low deposit new home system, you can still secure your new house and land package.
Have a Guarantor
It shouldn’t come as a surprise that having a guarantor will also help your application process. If you have a parent or family member that is willing to act as a guarantor for your application then your bank or lender will definitely view your application more positively.
Leon – Happy Homeowner
Apply With Someone Who has Full-Time Employment
If you are looking to get your own home with someone else, that can significantly increase your chances of approval. Not only does having additional income usually increase your borrowing capacity. But if they are working as a full-time or part-time employee, the banks will consider them a more stable applicant. This will help your application overall and likely secure you a better interest rate.
Of course, you will also need to consider their financial situation if you are looking to add them to your application. If their debt is too high, their income too low or they don’t work at all, adding another person to your application can be a negative.
Georgia & Russell – Happy Homeowners since 2020
Jerome & Paige – Happy Homeowners since 2020
How Much Can I Borrow Using Home Loans for Casual Workers
How much you can borrow will come down to a number of things. First and most importantly, is your income versus debts. At No1 Property Guide, this is the basis of calculating your borrowing capacity. It’s what allows us to get you into your no or low deposit house and land package.
If you have good income and low debt, you will be able to borrow a larger amount. And in some cases, you will be able to borrow up to 95-98% through Darren’s system.
If you went to a major bank or lender, you’d most likely only be able to borrow up to 90%. And that’s assuming you have fantastic employment history, a deposit and good credit history.
Or, if you have someone willing to go guarantor for you, and you have good financial history, you may be able to borrow up to 100% of the costs of the mortgage.
No1 Property Guide Home Loans for Casual Workers
While many renters struggle to become homeowners across Australia, there’s one group that is getting out of the rental cycle every day. And those are the renters who contact No1 Property Guide!
By using Darren’s proven new home system, they’re able to finally get out of the rental loop and move into their own home. With home loans for casual workers, full-time employees, business owners, and self-employed tradies, we have a no or low deposit new home solution to suit you.
Find out how you could become a homeowner thanks to Darren Walters’ no or low deposit new home system today. Your first step is to fill in our pre-qualification form. This allows our New Home Consultants to accurately calculate your borrowing capacity and fit you to lending policy.
Koce Family – Homeowners Since 2020
From there, our team will show you all your factual new home options. So you can make an informed decision around whether you stay renting, or become a homeowner.