Construction Loan Application Advice - IT Contractor/Casual Role, 4 months Employment only

Hey All,

First time poster, great forum.

Hoping for any mortgage brokers willing to provide some advice on which lenders may accommodate my situation below?

I currently have a vacant land loan and wanting to obtain a construction loan with total LVR being 90%. My broker is saying we may not be able to get approved with my current lender due to my work circumstances below. I really need approval within the next 2 months or so to obtain the home builders grant as I have already signed a construction contract and are required to commence construction by April. I live in VIC by the way.

I am currently employed in an IT role which initially was on a “3 month contract” which then was extended for another 3 months in December (employed for 4 months thus far). Now the “3 month contract” is between the employer and the recruitment agency. I am technically employed by the recruitment agency where the employment agreement between them and I is on a casual employee basis. However I could be considered as a permanent casual given I work 40 hours each week and my hours don’t fluctuate.

My work history is briefly outlined below.

- Prior to accepting my current contract role I was employed on a full time permanent basis but only for 3 months also in an IT role. I had my land loan approved while I was in that full time position and decided to move onto the higher paying contracting role to help with increased serviceability. I wouldn’t have been able to service an additional construction loan on that particular salary.

- Prior to the above 3 month full time job I was employed for a total 14 months in an IT role again full time

- Before that 14 months I was employed at another company full time for 6 months also in an IT position.

So I have been in the IT industry for just over 2 years, I understand some lenders would look at this favourably.

I really don’t want to change brokers as the bloke done a great job to help me obtain the land loan. I want to avoid him losing out as he’d obviously get a claw back if I was to apply with another lender through another maybe more well-versed broker.

Apparently he’s saying its not the lenders we need to impress it’s the LMI companies?

Any highly experienced brokers willing to provide some advice on which lenders are likely to lend in my situation if any or how to strengthen an application?

I’m happy to pay someone for their time to provide legitimate advice and would obviously stand in good regard for future business down the track as well as referrals.

Thanks for reading my post.

 

Hey Rolf,

Thanks for the prompt response.

Correct, paid a day rate , no annual or sick leave.

Cheers

 

Unfortunately your options are scarce, majority of the banks require 6 months employment history when casual.

Previously cba and suncorp wouldve taken it with 3 months with strong work history, but thats gone now.

I don't think it's even trying to impress the LMI companies...you need to impress the bank first.

 

This one is very tricky. Try CBA retail channel - they have shown some flex of late anecdotally. May have some wiggle room. There are some great posters that work there directly that may have some views.
There's some non-banks that operate in this space - but construction financing is the hurdle with them.