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It can be challenging to get a home loan, when you are employed on a contract basis. Many lenders will not accept this type of income, whilst others have strict guidelines before they will do so.
What is the issue with contract employment?
Whilst it is becoming increasingly common for employers to hire on a contract basis, and this can be wide spread across many industries, it can be looked at unfavourably by lenders, when you want to apply for a home loan.
If you are on a contract, you will most likely have a definitive end date to your employment. This can make lenders nervous as they can feel uncertain about whether you will continue to earn an income once your contract expires.
What are the lenders different rules?
Lender rules will vary as to whether or not they will accept income from someone whom is on an employment contract. Some lenders will want to see that you have been in a contract with the same employer for one or even two years. Luckily we have access to lenders that will accept income from full or part time contracts, even if they are quite recent.
It also varies as to how long your contract goes for, and how long you have remaining on your contract.
In many instances, lenders will want to see documentation to advise that your contract is going to be renewed or extended. This is particularly the case with short term contracts such as 3 monthly or even 6 monthly contracts.
Get help applying for a home loan when you are employed under a contract.
At Bee Finance Savvy, we go over our clients income, employment history, and other areas of your financial situation. Thus, we can help match you with a suitable lender, when we apply for a home loan on your behalf.
If you would like your income, and any relevant financial information assessed, our savvy brokers are here to help. Based in the Sutherland Shire, Sydney, we have helped many clients achieve their home buying goals.
If you’d like to hear from just some of our satisfied customers, take a look at our reviews on