Finance - casual employment

What length of time is normally required by banks to grant property finance for those employed on a casual basis, but working fixed days? Do banks lend to casual workers?

 

@CreateIt
Yes, some lenders do take casual income for finance purposes, time frame with the employer ranges between the lenders.

 

3 months is generally the minimum. Some lenders want 2 years with the same role and employer.
Note also some lenders discount casual income by 48/52tooths as casuals don't get holiday pay.

 

CBA is by far the best casual income policy - they can take either the "year to date" income or the last 3 months salary credits. This is handy in the case that you have worked more in the last 3 months than the year to date figure (this is the income paid from the beginning of the financial year).

Other lenders have stricter policy whereby they require you to be employed for a minimum of 6 months or 12 months (depending on the lender) and some lenders like Westpac will take 46 weeks of the lower of the previous years total income or your year to date income for this financial year.

Again this is why the CBA policy is far superior than the pother lenders.

 

Design on what your empment is as well would play a factor. I’m banks will under stand that a lot of the work force now days are going casual with labour hire as much as it sucks.

I had to do 3 months with the one company to get approval, that was working on labour hire in mining, and fortunately have a pretty good wage.

Best off to hit some Morgage brokers up

 

3 months - 2 years dependent on the lender used. Obviously certain lenders are used more than others because of this!

Likewise as others has stated, some will shade the income to a lesser around ~46-48 weeks to factor in assumed sick and (unpaid) annual leave.

Overall being casually employed isn't that big of a deal anymore, it's just about using the right lender for the scenario, do a reasonable amount of hours over the time employed and you shouldnt have too many problems.

 

Hiya @CreateIt

As mention above - CBA only require a few months of being in the casual role.

Having said that - please be reasonably certain that your income level will remain the same (or higher) whilst you have the loan. No point in pushing the limits on what you can borrow to then stress about doing enough casual hours at work to make your loan repayments.

Cheers

Jamie

 

Has that become easier POST-APRA?

 

3 months will open up CBA to you - as Shahin mentioned, CBA are good here. As mentioned the power is the verification of income that offers ability to use income for latest 3 month period, regardless of the time of the year.

There are (/were) options in the sub 3 month space too, albeit very limited & non banks.

 

The loosening of employment requirements for lending mostly came about not long before APRA started hamfisting it's way to relevance - so I'd say it's remained fairly consistent throughout the pre-'post' (ongoing) APRA.