Casual Employment

Home Loans for Casual Employees

Securing a home loan when you’re in casual employment can present unique challenges, but it’s certainly possible.

At Sanford Finance, we help individuals with different employment types, including casual workers, navigate the home loan process. We work closely with a range of lenders who understand the circumstances of casual employees and offer flexible options tailored to your situation.

Challenges for Casual Employees Applying for a Home Loan:

• Income Instability: Casual employment often comes with irregular hours and varying income levels. Lenders may view this as a risk compared to full-time or salaried employment.
• Limited Borrowing Capacity: Because casual workers may have unpredictable earnings, lenders might offer a lower borrowing limit to minimise risk.
• Stricter Documentation Requirements: Casual employees may be required to provide more extensive documentation to prove consistent income over a longer period, compared to full-time employees.
• Higher Interest Rates: Depending on your employment and credit history, some lenders may offer higher interest rates to compensate for perceived risks associated with irregular income.

Eligibility Criteria and Requirements:

While casual employees can secure a home loan, lenders may apply stricter eligibility criteria and documentation requirements. Some of the most common include: 

• Proof of Stable Income: You will need to provide documentation showing consistent earnings. Lenders usually request:
• Payslips or bank statements showing income over the past 6-12 months.
• Evidence of ongoing employment with your current employer.
• Employment History: Lenders prefer applicants with a stable work history. Having worked with the same employer for a longer period (e.g., 6-12 months or more) improves your chances of approval.
• Deposit Requirements: A deposit of at least 5-10% is generally required, although higher deposits will strengthen your application. If you have less than a 20% deposit, you may need to pay Lender’s Mortgage Insurance (LMI).
• Good Credit History: A strong credit score will improve your chances of securing a loan as a casual employee. Keeping your credit report clear of defaults and making timely payments is essential.
• Loan-to-Value Ratio (LVR): Lenders often look at your LVR, which compares the loan amount to the value of the property. Most lenders will allow a maximum LVR of 80-90% for casual employees.

Documentation Required:

To apply for a home loan as a casual employee, you will need to provide the following:

• Payslips: Recent payslips showing consistent income over time.
• Bank Statements: Evidence of income deposits and your ability to manage expenses.
• Employment Contract: If available, provide a contract or letter of employment confirming your ongoing casual status.
• Tax Returns: For some lenders, providing your last two years of tax returns may be necessary, particularly if your income fluctuates.
• Credit History: A good credit report is crucial to strengthen your application.

How Sanford Finance Can Help Casual Employees:

At Sanford Finance, we understand that every borrower’s situation is different, especially for those in casual employment. We’ll work closely with you to assess your individual circumstances and help present the strongest case to lenders. With access to a wide network of banks and specialist lenders, we are confident we can find a solution that works for you.

• Access to a Range of Lenders: We have relationships with lenders who are more flexible with casual workers and can offer competitive rates.

• Tailored Loan Solutions: We assess your financial situation and offer personalized advice on the best loan options available to meet your needs.
• Guidance Through the Process: From gathering the right documents to negotiating the best terms with lenders, we will be with you every step of the way.

Contact us today at Sanford Finance to discuss your home loan options as a casual employee. We are committed to helping you achieve your homeownership goals, even with a non-traditional employment arrangement. Let us guide you through the process and find the best solution for your situation.