Agency employment and home loan?

[organix]

Hi,

I have got a pre-approval for a loan for my own income, however want to get a loan with my partner as we are looking at buying a house potentially $100k above my pre-approval amount.

Unfortunately the lender we went with will not consider his income as I advised he was a "casual" and had only been working for about 8-9 months there. They said he had to be in the job for at least 12 months.

He is actually working through an agency in state government and they are looking to hire him directly for at least another 12 months and are currently sorting out his contract. He has been employed on a full time basis by his state gov department pretty much since he started there. Would any lender consider his income based on this? He could probably get a letter from his employer that states this. Would the lender advise that he needs to be employed directly through state gov for another 12 months? He previously worked interstate in state gov for a year prior to that.

Thanks!

 

[Jamie M]

Hiya

Doesn't sound like casual employment to me.

How much of a deposit are you looking to contribute?

On the surface it seems doable - especially given his previous govt. employment history.

Cheers

Jamie

 

[Peter_Tersteeg]

The problem with casual employment is even if you've got a contract they can terminate it at a moments notice. As a result most lenders do want at least 12 months in the existing role.

There are some exceptions to this and some lenders will look at the whole deal a little more holistically. They'll take into account past employment history and other things as well.

You might be better off talking to a mortgage broker than trying to figure it out yourself.

 

[Corey Batt]

I've got a fair few casual clients through at 6 months employment, speak to a broker as this seems do-able on face value.

 

[organix]

I'm looking to contribute about $63k as a deposit, and looking to obtain a loan for about $450-$550k.

I might call the lender and see what they say about the "casual" employment.

Thank you, I will consider a mortgage broker.

 

[Jamie M]

I'm looking to contribute about $63k as a deposit, and looking to obtain a loan for about $450-$550k.

I might call the lender and see what they say about the "casual" employment.

Thank you, I will consider a mortgage broker.

ok - if you can use a 10% deposit your chances of approval will be greater compared to a smaller amount (less than a 10% deposit usually means harsher credit scoring from the bank when assessing your application).

In a perfect world you'd have a 20% deposit so LMI wouldn't be involved - this would dramatically improve your options.

Cheers

Jamie

 

[Redom]

Doesnt sound like a problem that cant easily be overcome. You'll just need to pick a lender whose got more flexible employment policy.

When your in LMI territory, try the lenders with some flexibility to go outside stated LMI policy. The insurers stated policy is generally the 12 months in current casual employment role, but there are conditions if existing employment in the same industry.

On face value, a broker should be able to sort this out for your pretty easily.

 

[organix]

If my partner is on the loan, his parents would be our guarantors. Would this have any effect on his ability to borrow?

 

[Corey Batt]

If my partner is on the loan, his parents would be our guarantors. Would this have any effect on his ability to borrow?

Equity guarantors? This means you would be outside of LMI territory, and make the casual part of the application easier to get over the line.

 

[Redom]

Gaurantors generally dont improve your serviceability, they can however reduce your deposit requirements and reduce your LMI cost.

Only real servicing gaurantee is from ANZ i think and thats only partial (60% servicing must come from you) and his parents need to be on really high incomes (250k+).

 

[Jamie M]

If my partner is on the loan, his parents would be our guarantors. Would this have any effect on his ability to borrow?

This reduces the LVR to 80 so makes life easier

Cheers

Jamie

 

[Brady]

CBA 3 months casual.

 

[Redom]

Yep - that'd be the first place i'd call in your situation.

 

[tobe]

ANZ same, and they do guarantors much better.....

 

[Brady]

ANZ same, and they do guarantors much better.....

Listening?

 

[Marty McDonald]

ANZ guarantee can be from non family member and no set rules around the guarantee security property not being allowed to be mum and dads own home if they are on a pension.

 

[Brady]

ANZ guarantee can be from non family member and no set rules around the guarantee security property not being allowed to be mum and dads own home if they are on a pension.

Thanks, more info shared better for SS.

 

[tobe]

ANZ guarantors only need to complete a checklist. No requirement for A&L or formal income verification. Their eligibility is 'self assessed' as it were.

Rams have a very similar policy, but casual only used after 6 months with the same employer.

 

[Brady]

ANZ guarantors only need to complete a checklist. No requirement for A&L or formal income verification. Their eligibility is 'self assessed' as it were.

CBA is the same, don't need to formally verify asset/liabilities (unless 2nd mortgage) or income. But need to make comments regarding income. But obviously application is stronger if verified and some credit officers can be a pain and request further info on occasions.

 

[tobe]

ANZ dont get an A&L at all. the guarantor doesnt declare income. they do declare occupation and marital status only, and ID. Same verification whether 1st or 2nd mortgage.