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What is an unusual income?

If you do not receive approximately same income every pay cycle, it can be considered am unusual income income. Eg. Some work places pay for 3 weeks continuously and none for fourth week.

Why banks take it seriously?

Lenders create their own guidelines for accepting income. A Mortgage broker job is to categorize lenders criteria’s and act accordingly.The income documents have to be presented in a way the lenders accepts them. A experienced broker knows how to provide documents to get a tick in all boxes.
Lets say, your recent 2 payslips does not have a overtime. We can satisfy lenders that you are most likely to receive same amount of overtime in current year as well by showing your previous payslips and last year group certificate.
The number of clients are increasing in unusual employment due to structural change in work places. We have a expertise in that and we can help.

We can discuss scenario with like minded lenders and provide you few comparisons before you want to proceed.

Unusual employment types?

As discussed above, any job which is not a regular full time or permanent part time is considered as an unusual employment by lenders such as:

Probation work: Some lenders accept probation, some accept after three or six months and some do not accept at all. Individuals working on a probation period can get a home loan but not with all lenders.
Contract employment: There are many reasons that lenders avoid contract employment. It all depends on duration of contract, experience in same field and previous extension of contracts. Check with us for more information.
Self employed: Self employed people are given most hard time from lenders. The tax returns are manually analysed by lenders according to their guidelines. Recent BAS statements also play an important role to project an current year income. Please not that all lenders have their own criteria of calculating income. Some lenders may take lowest, average or higher of the last two years income.
Casual Income: Some lenders do not have any issue with casual income as long it is over a certain period of time. Casual employee are paid more than permanent employee in some industries. We will match you with right lender.
Overtime and loading income: A large number of workers in specific fields like aged care workers, Road and infrastructure workers, police and nurses have big part of their income from overtime and loading work hours. Some lenders do restrict themselves to accept all 100% of that income.
Temporary employment: There are people who do not work all the years such as people working at farms etc. Some people are provided work by employment agencies and do not receive enough work every week of the year. Lenders may charge higher interest rates in such cases.
Fringe Benefits and Bonus income: If you a company maintained car. any other fringe benefits or bonus then please remember most of the banks do not accept at his stage now. There are lenders who adds extra income on the top of your gross income as they believe you save money by being provided car and phone.
Special category employment home loans: People working in medical industry are eligible for vast range of products and low deposit loans without paying LMI. If you are dentist, accountant and professional working in industry for a while and earning above recommended threshold,then you may be eligible for these benefits as well.
Rental income: Lenders consider your rental income according to their criteria such as 50% ,80%or 100%. We know better which lender to deal if you have rental income too.
Commission income: There are lot of roles in workplaces which only derives income from commission model. Fortunately there are few lenders which considers commission income at as full time income.

IF you have any of the scenario from above or a unique on its own, discuss with us now. We will provide you the best advice according to your needs.

Do you have unusual employment?

The world is changing fast enough and so is the mortgage industry. The traditional and regular income jobs are fading out. The employment structures are changing fast. The bonus and incentives are getting an upper hand in few jobs specially in commission or contract based jobs. The government jobs with regular income are diminishing on a slow pace. There are lot of other parts of income which has to be considered by the banks for a fair serviceability to get achieve a borrowing power. Some of these income types are:

Income from shares( stock trading)
Dividends from Shares
Bonus and incentives
Income from Commission
vehicle provided by Employer
Salary sacrifice, or Salary package
Stipend
and any fringe benefits

what has banks to do with employment status?

Banks often review their bad loans. The certain categories in employment are outlined and further more restrictions are plotted against these “employment status”.Banks want to play safe and learn from their past experience.

However from the previous experience it cannot be true to judge new comers in the market. as an example, Ten years ago people in health industry were not earning as much they are now. So the industry trends keep changing too and banks are too slow to change their guidelines.

If you work in health industry, you may get benefit in a commission model loan. contact us for more information.

What are the requirements?

Lenders have some extra requirements for unusual employment loans. On a full time basis, lenders just ask for recent 2 payslips but in other case they may request:

Previous Payslips
Recent PAYG summary
A Letter from employer
Recent Bank statements
Last two Tax returns

Assessment criteria

The eligibility assessment criteria depends on various factors

Your employment and income creates a score which derives lenders to find out how much risk exists on your application. There are few factors which matters most such as

How long have you been with recent employer?.

How long have you been in your industry. The study can be included as well.
The risk level to lenders of your industry. e.g. medical practitioner are low risk and a Forex trader as a high risk
Type of employment (full time, part-time, casual, contract etc).
Job stability (casual, overtime, bonuses, commission etc).
Dependence on second income.

These factors are not limited to above. Share your scenario with us now.

Regular vs Short term employment

You may be earning more income in a short term or contract based term employment but banks do hesitate to service full doc loans. The short term employments are considered as high risk according to lenders. Therefore, most of the lenders prefer to have 20% deposit.

Some lenders offer low deposit loans but they don’t guarantee lowest interest rates..

How do banks analyse unstable income?

For an unusual employment where income has lot of variations, lenders have their own criteria for assessment.

Some banks accept one of the payslip with lower income
some lenders may take average of the two payslips
Some may take the average and then accept it if it is higher than the last year group certificate.

All Lenders have their own guidelines and criteria’s. Its not always possible to influence the banks and get the loan approved if we do not fit in their shoes. But we can go to right lender and get things done quicker.

Discuss your situation to us. We can provide you obligation free information

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Unusual Employment Loans