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Part Time Workers: Loan Application

Have you ever wondered if you can get a home loan while working part time? The answer is yes, you can! However, lenders stay cautious when they approve a loan for people who are working part-time. Therefore, it is important to find a lender who uses common sense while assessing the mortgage application to review your personal situation.

Acceptable Level of Income

Lenders only consider 50 percent of the income you earn from a part-time employment if you have been working in that job for more than a year. However, there are some banks that accept the whole income while assessing your ability to make repayments.

Therefore, if you are a part-time worker and want to apply for a home loan, consult Hunter Galloway, as we know the lenders in the market. We can guide you in the right direction by keeping in mind the following:

  • Provide help in finding a lender who can accept your income, allowing you to borrow more and
  • Find a property by keeping in mind your budget


Required Documents

Document requirement varies from one lender to another. To apply for part-time loans, you are required to provide the following:

  • Two recent salary slips and
  • Two years’ group certificates


Reasons for Lender’s Conservative Mindset

Bank are usually conservative when it comes to approving a home loan for part time worker. It also makes them biased when approving home for a person with a full-time job versus an individual with a part time job.

Again, if you are working part-time and looking for a reasonable lender who is not sceptical about the part-time employment, talk to our team, as we can help you find a suitable lender.

Does Increasing your Working Hours Help When Applying for a Part Time Home Loan?

The answer is yes! It does increase your chances of getting approval from a lender. Request your boss to increase your working hours or shift you into full-time employment to get a loan approval.

However, be mindful that banks usually require a minimum of a six-month track record of the new income stream to approve the loan. A borrower has to provide the following with his application:

  • Salary slip showing the higher salary and
  • Letter of employment to confirm the working hours

Moreover, if you get a pay raise make sure you inform your broker as it further increases the chance of getting approval.

Can You Get Approval from one of the Big Four Banks?

You can get approval from major banks and may even get approval from a credit union or building societies, but it depends on their guidelines. Most of the time, banks do not consider all of the income from a part-time job. Therefore, you can only choose from a small list of lenders.

Other Considerations

If you can afford a loan while you are working part-time and do not have any debt or personal obligations like children, banks do not take into account the overtime income when they evaluate your loan application. There are certain lenders who want you to provide a proof of long working hours for at least a year. If the amount of overtime income is material, they might take into account 50 percent of it. However, depending on your profession, there are some lenders who take 100 percent of your income.

So, it is important to keep the above factors in mind if you are working part time and wish to apply for a loan. It will not only help you make an informed decision but will also enable you to secure a good deal.

Speak to Hunter Galloway about applying for a loan on a part time income today on 1300 088 065.

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