Contractor - can I still borrow ?

Discussion in 'Property Finance' started by hillsguy, 23rd Sep, 2015.

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  1. hillsguy

    hillsguy Well-Known Member

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    Hi all, have now switched to contract type work from full time.

    I have signed a 6month contract with a company and wanting to know if banks will still be open to lend me funds for IP investment ? or will this be a showstopper ?
     
  2. Terry_w

    Terry_w Structuring Lawyer and Finance Broker - all states Business Member

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    Do you have a history of contracting?

    If not then generally you will be considered newly self employed and lenders will want to see 2 years tax returns.

    If same work as before but changing from PAYE to contractor they may be more lenient.
     
  3. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Its generally fine but really depends on the LVR, if you are on probation and the lender you use.

    Are you PAYG or getting paid to an ABN?

    Are you in IT?
     
  4. Redom

    Redom Finance Strategist Business Plus Member

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    Not a showstopper at all - there's plenty of contractors around, especially in IT! History in employment role will help.

    So long as your not paying your own taxes (i.e. your not being paid through an ABN), your fine generally fine. Subject to individual banks employment policies, you should be OK so long as your a PAYG contractor. 80% LVR will make it easier too.
     
  5. Mick C

    Mick C Well-Known Member

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    Key question, who's paying the tax?
    Ie are you a ABN contractor or a PAYG contractor.

    if it's a PAYG contractor- it's a easy and done deal at 80% LVR presume no issues with your credit file or saving history etc...
     
  6. hillsguy

    hillsguy Well-Known Member

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    I am going thru an agency that is paying taxes for me. I can show long history of continuous employment full time ... just recently switched.
     
  7. Mick C

    Mick C Well-Known Member

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    your good to go, PAYG contractor :)
     
  8. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Exactly - that's the first thing any banks going to ask.

    Agree with Mick - sounds like you're PAYG rather than S/E which means your options are open.

    Cheers

    Jamie
     
  9. hillsguy

    hillsguy Well-Known Member

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    Thank you all for the replies !!!
     
  10. Mortgage Capital Australia

    Mortgage Capital Australia Mortgage Broker & Private Lender Business Member

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    Yep standard servicing applies and a wealth of options when it comes to choice of lenders.

    Cheers


    Richard