There are three key rules to follow to get a mortgage when you don’t have a traditional work pattern
More than one million Australians are swapping the 9-to-5 grind for the freedom of the gig economy, picking up work from a variety of freelance jobs – from driving for Uber to designing websites. Add a further 1.27 million people running single-operator businesses and it’s easy to see how the world of work has changed.
Like all self-employment, the gig economy can be rewarding from both a lifestyle and financial perspective. The downside can come when you want to buy a home.
“Generally speaking, it has always been more challenging for self-employed workers to secure a home loan, as it can be difficult to demonstrate a stable income and continuity of employment,” says Susan Mitchell, CEO of Mortgage Choice.
A 2017 report by non-bank lender Pepper Money found that 26% of Australians who had been knocked back for a loan were refused because they were self-employed or worked part time. The thing is that working for yourself doesn’t have to spell the end of home-buying dreams. It just means you may need to take a few extra steps to become home-loan ready.
Phil Gallagher, mortgage broker with Aussie Belmont in the Lake Macquarie region in NSW, says that around one in three of his home-buying customers is self-employed. The good news, according to Gallagher, is that self-employed borrowers can usually access the same loans and lenders as home buyers working for an employer – often with a deposit as low as 5% – as long as they meet all the usual income and affordability requirements.
That said, Gallagher recommends following three key rules of thumb: “Have your tax returns up to date, show that you’re earning a profit and keep things simple.”
Stay on top of tax returns
Bu hikaye Money Magazine Australia dergisinin May 2019 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Money Magazine Australia dergisinin May 2019 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Giriş Yap
Is the public market shrinking?
Australia needs a healthy stock market to give companies access to funds and to allow retail investors to build wealth.
India: three steps to transformation
Massive investment and extensive reforms turbocharge the economy.
The ballet of business
Changing direction, products, models and marketing is a hard task for a business. We chart what it takes to turn a business around, plus profile four successful pivots.
Save money and the planet
Could the high cost of living give us the incentive we need to reduce how much water and energy we use or waste? These eco-friendly household tips will help you do just that.
AI adoption is the new black
Artificial intelligence is set to reshape the commercial world, and small enterprises can’t afford to miss the boat.
Spam attack! Murky laws jam our inboxes
Unwanted marketing material is one of the pain points of modern life.
From rags to riches in style
Rich Tran sported a bowl cut until he was 14 years old and had no intention of becoming a hairdresser.
New work deals are killing the 'old' office
The Covid pandemic and the subsequent lockdowns accelerated the trend to more people working from home. It was a mixed experience.
Points taken: the truth about rewards
Can hopping between credit cards really boost your frequent flyer haul and give you cheap or free travel - or is it doing more harm than good behind the scenes? Money puts it to the test.
Shortcuts to own a home
Innovative ideas with a focus on low costs and sustainability could help solve the housing crunch.