Non ongoing contract position and home loans

cookie2 on 10/05/2022 - 17:31
Last edited 20/05/2022 - 16:26

Hi,

Is anyone able to offer any info from their own experience on applying for a home loan when working in a role that is Gov Non Ongoing 12 month contract position.

Looking at a new job and pays more than my current role (where I've been for over 1 year currently) but I'm concerned it may cause more difficulties in applying for a home loan, than what the extra $ is going to give me towards repayments (won't be changing my budget or total loan amount).

Anyone able to shed light on how lenders view non ongoing gov positions? Or directions on where I may find more info quickly? (I just found out during my interview today and will need to decide pretty quickly IF i get it).

Thanks peeps

Update for anyone wondering themselves

Mortgage broker was great, explained heaps and made me realise I'm in a better position than I first thought. In regards to job they advised, new job but same industry is fine. New job within current workplace but a different area, still fine. Casual (my partner) has some lender restrictions, namely must be in role for 6 months already, otherwise lender options reduced. Also for anyone in the NFP sector they consider your amount before tax too and some overtime.
Good direction forward now, thanks all.

Financial

Comments

  • Banana on 10/05/2022 - 17:41
    +2

    Hi there, I secured a loan one month into my max term full time contract role. Does your contract mention you are on full time?

    I spoke to my broker to confirm it was okay to take that job. The extra money helped with the application. Have you spoken to a broker?

    • cookie2 on 10/05/2022 - 19:06

      Thanks for your input. No i haven't re broker. Just decided I'm ready recently (atleast think I am!) And just clicked about the role being non ongoing. The job description actually stated ongoing and non ongoing, but the interviewers advised it was a contract role.
      Did your contract show that it was a contract role?

      • Quantumcat on 10/05/2022 - 20:18
        +2

        Talk to a broker - different banks are more lenient towards different situations.

      • moar bargains on 10/05/2022 - 21:05
        +1

        Yep, talk to a broker. If banks didn't lend to people on contracts there'd be a ton of people unable to get home loans. That doesn't necessarily mean any bank will lend to you, but there are heaps of people around on contracts who have got loans. I'm one of them. As others have mentioned though, it depends a bit on what your contract length is and some other factors.

      • Banana on 10/05/2022 - 21:10
        +1

        My contract says it's a max term full time role. The broker told me the bank doesn't care about contract as long as it says full time.

        • cookie2 on 11/05/2022 - 19:03

          Thanks. I'll keep it in mind, if I even get offered the position. Spoke to a broker today and they didn't seem fussed as long as same industry/work type that I'm currently in.

          • Banana on 11/05/2022 - 21:37

            @cookie2: Oh that's right, I forgot that my broker said if it's in the same industry/work type but higher pay, it will be seen as a promotion instead. Good luck!

  • Hybroid on 10/05/2022 - 17:43
    +2

    Speak to a broker or lending institutions directly. No one can tell you what lenders are going to say or decide as part of their risk analysis.

  • stirlo on 10/05/2022 - 18:16

    It's worth checking if the job was advertised as "Non Ongoing/Ongoing" or just "Non Ongoing" if its the former you can be made permanent if they like you without reapplying. If its the latter then you will need to reapply before getting a permanent roles which is annoying.

    Regardless it's definitely a question for a mortgage broker.

    • cookie2 on 10/05/2022 - 19:07

      Thanks, the job was advertised as both. Thanks for letting me know re the difference, appreciated.

      • stirlo on 10/05/2022 - 19:41

        Yeah it’s kind of their way to give you a probation without calling it probation (though there is also a probation period normally). By making a non ongoing offer there’s no commitment to keep you after a year vs if they make an ongoing offer it’s extremely hard to get you out of the job even if you’re bad from the start. Good thing is that if you do well it’s pretty simple to convert you to ongoing after a while.

        • cookie2 on 11/05/2022 - 19:05

          Thanks. Well see if I even want to be there after a year, I'll test them out too.

  • freefall101 on 10/05/2022 - 18:33
    +1

    I spoke to a mortgage broker last week about this, 12 months most lenders are ok, under 6 months they're not (there's a couple that'll do it but the costs are higher).

    Was specifically asking for my scenario, work is looking to extend me by either 6 or 12 months, broker basically said if it's not 12 months then look at a new job. But this was talking about buying a house before the extension went through.

    IMO call a broker and see what they say, it's worth it anyway. I'm not going to use mine but they provided a tonne of data for free.

    • cookie2 on 10/05/2022 - 19:08

      Thankyou, will do re the broker later in the week.

  • thatonethere on 10/05/2022 - 18:44
    +1

    You will need to talk to a broker for the loan. There is some risk of you have not been doing it for a while (ie can't demonstrate you can hop from one gig to another).

    This will limit your loan options especial post royal commission.

    • cookie2 on 10/05/2022 - 19:20

      Thankyou. Looks like broker will be the best way forward, thankyou.

  • WreckTangle on 10/05/2022 - 20:55
    +1

    I know from experience that banks generally refuse mortgages for people in temporary roles

  • silenthillrocks on 11/05/2022 - 08:05
    +1

    Plenty of lenders will be fine with this. Try bigger lenders such as CBA, ANZ, Westpac, Macquarie, Bankwest.

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