Employment and home loans
01 April 2012
When you apply for a home loan, you will need to provide details of how you get your income. Not every lender accepts every type of employment as income, and it’s important to know what counts before you get started.
Here are some of the different types of employment HomeStart may consider when you apply for a loan.
Permanent, full time and part time
Generally, you will need to have been employed for at least six months at your current place of employment. You will need a combination of PAYG summaries, payslips or a signed letter from your employer as proof of what you earn. Ask your loan consultant for more information.
Casual employees, as well as contractors, need to have been employed at the same place for at least six months. Your lender will work out your average earnings over a set period of time, and count this as your income.
If you are a seasonal employee, you’ll need to prove that you’ve earned an income from your work over at least two years. This involves having at least two types of evidence of your income.
If you are self-employed, you will be required to prove that you have a regular income to sustain a loan. This includes evidence that you are a business owner or partner, have been trading for at least two years, and that your business provides a steady income.
Self-funded retirees must be able to show that they have received regular income over the previous six months from superannuation or dividends, and that this income is sustainable.
There are other forms of income such as Centrelink payments, commissions and bonuses, and other allowances, which may be acceptable. Your best bet is to call a loan consultant to find out more.