Hi Guys,
I am currently working full-time and was considering to change to contract / consulting. Reasoning more $$ for deposits…
1. how would the bank review the change
2. Do i need to be working consistently as a contractor / consultant for X months / years
3. I dont want to stop buying for the moment, would this slow me down for the next 6-12months
Already own a few IPs and also realise that every bank has its own lending criteria aswell, just a general thought would be great.
Cheers,
Adrian
Hi Adrian
Typical broker answer but Yes / No.
Sorry about that but couldn't resist it. It all depends on what line of work you are in.
i have just completed a couple of deals for a forum client in IT and he switched a month or so ago now contracedt to 1 employer thru a Recruitment Agency but income has increased considerably so in IT is expected.
If however he was Contracting to a couple of employers and considered self employed the deal would have been a lot harder.
It is also going to depend on the lvr of each new IP as over 80% another hurdle to cross and even with DUA on the LMI some lenders would have an issue.
As i say more info probably needed at this stage to give you structured answer.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Adrian
What industry are you in and how long have you been in it?
Like Richard said, there's quite a few variables which will determine whether it's possible or not.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Another variable to consider above those mentioned by Jamie and Richard is are undertaking any commercial risk. If you're paying for outgoings/materials (industry dependant) you're more likely to be viewed as self-employed. If you invoice the contracting company on a regular basis (and even better if they withhold tax before paying you) you're more likely to be treated the same as a salaried employee with quite a few employers.
If you were considered more on the "self-employed" camp, then I think you would have to at least prove to lenders that you had about 2 years worth of consistent income. So I suppose you'd need to think hard about the consequences of moving from full-time work to being a contractor/consultant, as a more "self-employed" person.
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