Hi Everyone
We are in need of little advice, we have found a land we like to build on and have to exchange on it in next 14 days, and settle on it in mid to late May when site is ready.
Currently we both are PAYG, and have applied for Loan via broker and should get our pre approval without much hassle. Last Friday I have been offered to work as IT contractor and leave my PAYG status, new role will give me atlases 4K a month more then my current earnings.
Dilemma for me is if I change my job now and become contractor will this effect my pre approval. And also what clauses I should have in the contract to cover my self in an event if the bank changes their mind.
All help will be great help; this is the first time we are doing this and little nervous.
Regards
AlfaHi Alfa
Difficult to answer that one without a bit more information.
Different lender treat contract work differently and it depends on some many other factors.
For example if the lender has taken a high percentage of your income into the serviecability calculation then they maybe slightly more cautious. The total LVR will also be important, if the loan is mortgage insured the mortgage insurer may have his own rules on the matter.
In saying all of this you may find then lend simply says NO when it comes to the full application.
Go back to Broker and tell him the situation as any Broker worth his salt would be able to fix the problem.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Thanks Richard
Spoke to broker and explain the situation, and he recons their is not other way then just stick to the job atleast until I settal on the property in mid May.
Do you recon it’s time to check out different broker?
Regards
AlfaAlfa
What a load of rubbish.
With all the facts it is hard to give an definate answer but i would be looking to switch brokers to someone who can understand Contractors and the way in which they work.Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
In most cases the lender will not consider your income if you are on probation. If you can negotiate the contract so that there is no probationary period you may be in with a chance. All the contractors I’ve known going into new roles have been on probation though. Also are you presently working in the IT field in your PAYG job? If you are that is favourable.
If you could tell us 1) what the LVR is and 2) what lender your pre-approval is, we could have a lot more insight into the situation.
It’s a case by case situation and disagree with Richard that it is all up to the broker, until we have more information.
Liz
Mortgage Lender
The opinions expressed in this public forum should not be construed as professional advice of any nature.
1300 780 826Hi
we are looking at borrowing 93 % (518K), I am been in IT industry for close to 8 years, I will have signed three years contract (10K a month + commission ) without any probation period. My broker has went with Suncorp.Regards
AlfaAlfa
Ok Suncorp may have a problem with that as they are not best with new Contractors.
Tell your broker to place the pre-approval elsewhere. If he can’t i can think of a couple of lenders who would welcome the business.Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
You must be logged in to reply to this topic. If you don't have an account, you can register here.
