All Topics / Finance / Having trouble getting next IP loan due to my type of employment

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  • Profile photo of ChelkinChelkin
    Participant
    @chelkin
    Join Date: 2009
    Post Count: 15

    Hi guys

    Hoping I can get some help.  My husband and I are currently using a broker to obtain a loan for a second IP.  However, my employment becomes an issue when assessing our lending criteria.  I have been contracting for the last two years (I am a qualified accountant).  Basically I take contracts for various amounts of time through employment agencies, ie the last three contracts I've had have been 9 months, 9 months and now 4 months.  It is full time work and I am paid direct by the employment agency.  The banks don't seem to like this.  In particular at the moment as they cannot see what I will be doing after 4 months time, although I know I will pick up another contract.  I have worked in the same industry for ten years.  Everything else is fine, we have enough of deposit, no bad credit history, current property values we own are good and husbands employment is fine he has been in the same job for the last ten years.  At present we tried ANZ as they had some sort of loan which specified contract accountants ok to apply, but no luck, even though my income and tax returns show high income.  Any ideas how to approach this or banks people know of that could assist us?  Is there another way to list me on the loan with my husband being the main income earner and putting me down as extra wages part time?

    Thanks in advance for your help. 

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Hi Chelkin

    It can be frustrating.

    There’s not quite enough data to provide an accurate response. Perhaps try out one of the brokers that frequent this forum for a second opinion and see if they can get it done for you.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    I am sure your Broker has his reasons for approaching ANZ but i cant think of lender less favourable when it comes to Contractors.

    Just completed a 90% lvr for a client in a similar boat in the mining industry who was paid on Contract thru an employment agency with rolling 6 month contract.

    If you can substantiate the regularity through past Tax Returns it shouldn't be a problem.

    Course as Jamie has mentioned difficult to comment when you only have a small bit of hard data.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    Qlds007 wrote:

    If you can substantiate the regularity through past Tax Returns it shouldn't be a problem.

    Exactly my thoughts – a couple of years of consistent tax returns should do the trick.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Again though NOT with Anz.

    It is horses for course and they are not in the running for such a deal.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

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