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Can you secure a mortgage without a full time paying job?

Published on November 30th, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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If you are thinking of applying for a home loan that will help pay off your mortgage there are a few things that you need to consider that will affect your eligibility. Not having a full time paying job might be one of your concerns, but it is still possible to get a home loan. Here are four things you need to consider when getting a home loan.

Prove that you have a solid record

One of the requirements that come with getting a home loan is showing that you have a permanent job, which means that you will be able to meet the repayment schedule. However, in such a scenario where you find yourself not having a full time paying job, you will have to prove it through financial records.

Your credit history report can act as a great spokesperson to your spending habits. Lenders will often look at it to get an idea of how you have been using your money. You can show your lender that you will be able to meet payments by:

  • Paying all accounts on time.
  • Paying more than the minimum of what is required from you when it comes to credit and loan repayments.
  • Making sure that there are no arrears or bad listings that can decrease your chances of securing a home loan.

You can use your savings

According to the Australian Bureau of Statistics (ABS), there were 15,443,50 credit-active Australians in 2013. If you don’t have a credit history, there is no need to panic. There are people who are well into their mid-thirties who don’t have a credit history, and there are other ways to prove that you are financially savvy.

If you are applying for a home loan through your bank, you can prove this through your savings account. There will have to be a considerable amount of money in your savings to get the lenders nodding their head towards an approval.

There are other healthier ways that you can start building your credit history such as having a post paid mobile account, various utility accounts, or a personal loan.

You can get a co-signer

This is basically someone who will apply for the loan with you and you will be both held accountable in terms of meeting the repayments. It will be best to go with someone who has a good credit score and no bad listings. This will also have to be a decision you will have to consider carefully and be certain that you will play your part in paying off the loan.

If at first you don’t succeed…

Some lenders might still be wary of giving you a home loan, but that shouldn’t demotivate you. If they have denied your application, you can ask them to tell you in writing why it has been disapproved. Then it is back to the drawing board.

Fix the errors which have been pointed out and find ways to strengthen your credit history. Don’t bite off more than you can chew by applying for various loans and accounts that will be hard to pay off later. It will work in your favour to shop around. Where one door closes there is always that will open.

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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

Approval for home loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.

The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well as others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.

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