Lenders' views on contractors

[Eug]

Hi all,

I have heard that lenders looks for a history of employment stability as part of assessing a loan applicant.

What are lenders' views towards loan applicants who choose to be full-time employed as a contractor rather than a permanent employee?

Cheers,

Eug.

 

[Rooster]

Hi all,

I have heard that lenders looks for a history of employment stability as part of assessing a loan applicant.

What are lenders' views towards loan applicants who choose to be full-time employed as a contractor rather than a permanent employee?

Cheers,

Eug.

I've never had any trouble with lenders as a fulltime contractor.

They will need to see a history of previous contracts and preferably in the same field of work.

I generally have to provide my previous years tax statement / group certificates as evidence that i continually am in this type of work.

You obviously can't be out of contract at the time that you apply for finance though!

Cheers

Rooster

 

[Rolf Latham]

Hi

Depends on a few things

Some lenders will want contunuity of at least 12 mths per contract.

The good thing is that most times u do have the choice of other lenders that are less fussy

ta
rolf

 

[The Sniffer]

Can you confirm what sort of contractor you are.

Contract PAYG: employed by one employer or recruitment firm and paid on a PAYG basis. e.g. your employer holds back your tax and pays it to the ATO. Just like a salaried employee.

Self Employed Contract: You have an ABN and are responsible for your own tax.

Can you clarify which of the two your fall under?

 

[jonmardell]

most of them are fine if you are in same line of work and can prove previous history by tax assessment notices or tax returns.