If you are a contractor or self employed it is possible to take out a mortgage.
What qualifies as a contractor?
Self employed contractors are usually sole traders with a registered ABN who invoice their employer and then pay for any expenses such as their own wages from their business’ income. In other cases they set up a company or trust which enters into the contract, which then employs them on a PAYG basis. Management consultants in most cases come under the category of self employed contractors.
Most self employed borrowers need to be in their current role for two years before they can get a mortgage. However, one of our lenders looks favourably upon contractors and those working on commissioned jobs if they just contract to one main employer and if they work for a hourly or daily rate.
In these situations, you’ll need to prove your current income with your invoices as well as your prior income in past roles. Generally the lender will calculate your average income less any GST component and taking into account 2 – 4 weeks in unpaid holidays each year.
Contact us to discuss your individual situation and how we can help you gain finance, or you can start the application process immediately.