Borrowing capacity on part time salary

Hi just wondering whether borrowing capacity is affected by permanent part time work?

Say for example.. if I am employed full time at 38hrs a week and receive 70k per year vs being employed permanent part time at 30hrs per week and also receive 70k per yr for this.

So the income in both scenarios is the same but one is part time on a higher hourly rate and the other is full time employment

Thanks

 

Apologies ove posted on the wrong thread, will repost on property finance

 

Hi just wondering whether borrowing capacity is affected by permanent part time work?

Say for example.. if I am employed full time at 38hrs a week and receive 70k per year vs being employed permanent part time at 30hrs per week and also receive 70k per yr for this.

So the income in both scenarios is the same but one is part time on a higher hourly rate and the other is full time employment

Thanks

 

Perm p/t is preferable to casual at there's a greater amount off certainty on your income/hours.

 

If both jobs are permanent, they both work the same in terms of income. If you're casual, that's not as good as it will be assessed as YTD over 46 weeks to allow for 4 weeks holiday and also 10 days sick leave. If Permanent part time you don't have this issue so it's effectively treated the same as full time.

 

Most lenders treat it as the same, same policy for part time & full time. Same income treatment.

Varying nature of work hours (not part time, but casual) does lead to longer lead times before income can be used.

 

It’s not

Treated same as perm full time employment.

Lenders prefer the consistency of part time over casual.

Cheers

Jamie

 

Question. Does pay on a contract basis get shaded?

 

PAYG

 

Some lenders treat it the same as casual employment. Others look at total income over a period of time and annualise it. Both of these methods will shade the income to some degree but I think this is reasonable as you don't get paid for holidays and sick days, but people still take them.

 

Ok, it's a fixed term contract that includes annual leave.

 

Most would likely view that as a regular permanent position, no big deal.

Some will ask what will happen after the contract ends, which is almost impossible to answer satisfactorily. Best to avoid certain lenders, but for the most part it's not a big deal.