We come across casual workers who have repeatedly been told that they do not qualify for a loan. Let us show you how we busted this myth with a client who had been causally employed for a number of years.
The Situation
Our client was employed as a casual teacher:
- With strong demand, she was getting regular work and had been a casual teacher for over a year
- Being casual, it also meant her day rate was higher than if she was permanent.
Her finances:
- She had a great savings balance of $50,000 and was saving extra with her goal to buy her own place
- She was renting and wanted to have her own home.
The Plan
- We used her previous tax return to confirm the consistency of her casual employment
- We worked out her borrowing capacity and which lenders we could apply to using their casual employment policy. There are a range of lenders and products available for casual workers, and while their policies change occasionally, they will generally look at your income, employment history, and credit file when reviewing your loan application.
- We focused on her budget to ensure she could afford the loan if she worked less hours
- She met with a financial planner to ensure she had sufficient personal protection to cover her mortgage in the event she could not work.
The Outcome
- She successfully purchased her own home and has been paying this down regularly
- She has since purchased an investment property using the equity in her home and plans to buy her second investment property.
