Forums / Getting Technical / Finance / Obtaining loan whilst contract working

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  • Profile photo of bricmanbricman
    Participant
    @bricman
    Join Date: 2008
    Post Count: 26

    Hi everyone

    Currently have a loan with St George bank for $375k on a 2 bed unit in Carlton-NSW and LOC for $73k.
    I want to either upgrade to a house or sell up and invest elsewhere. Currently I am working on a contract/freelance basis and paid by a recruitment agency (Hays). When i approach the bank they want to see PAYG payslips from the company that i work at, is there any alternative lending?

    The plan would be to sell current property, walk away with $300k cash and purchase a small semi in the same area ($900k). In order to do this i would need to borrow an extra circa $200-250k

    $375 current loan + $250 top up loan + deposit $135k + $73k LOC = $833k

    Breakdown of new LOAN OF $833k – $300k cash = $533 total borrow
    deposit only 10% as owner occupier

    Hope this makes sense, and someone can help me out

    Best regards
    Ian

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,007

    Finance for workers who are contractors isn’t that difficult – it just comes down to the way the contracting arrangement is structured and then finding the path of least resistance. Generally contractors will either be:

    *fixed term employee contract (fixed hourly/amount for a set period of time, paid to a TFN as an employee NOT an ABN)
    *day rate employee contractor (fixed hourly rate with no guaranteed hours, paid to a TFN as an employee NOT an ABN)
    *self employed contract (paid in any variety of hourly, set amount of otherwise, paid to an ABN as a contracted business)

    Depending on how your exact situation is will determine the best way to present this and which lender – as some lenders are a lot better for these scenarios than others.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of bricmanbricman
    Participant
    @bricman
    Join Date: 2008
    Post Count: 26

    Thanks for the advice Corey

    I am the middle option (fixed hourly rate with no guaranteed hours, paid to a TFN as an employee NOT an ABN).

    I am basically a freelancer. Can your company help me out in this situation, if so what do i need to provide as a starting point.

    Best regards
    Ian

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,007

    Thanks for the advice Corey
    I am the middle option (fixed hourly rate with no guaranteed hours, paid to a TFN as an employee NOT an ABN).
    I am basically a freelancer. Can your company help me out in this situation, if so what do i need to provide as a starting point.
    Best regards
    Ian

    That’s not too difficult – it reduces the options available but definitely still possible.

    Feel free to contact us via http://www.precisionfunding.com.au/ and you can have your situation looked at.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,061

    Contract employment is quite common – and certainly doesn’t preclude you from borrowing.

    Factors that come into play are the size of your deposit, the length of time you’ve been in the industry you currently work in and the duration of your contract.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: info@passgo.com.au

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