Tips for Getting a Home Loan if you are a Casual Worker Sep 13, 2018 | Uncategorized If you are in a casual employment and your income fluctuates then also you can qualify for a home loan in Australia. In Australia, there are a number of regular lenders who are ready to provide loans to candidates who are on casual employment. Usually, lenders consider lending money to casual employees as risky. However, there are banks and other lenders in Australia who offers low doc home loans to casual employees. Low Doc Home Loans In this context, it is important to understand about low doc home loans. Such loans are designed particularly for the self-employed individuals. They are well-suited for individuals with irregular income. However, the low doc home loans are considered to be of higher risk than regular home loans. Therefore, these loans have high home loan rates as compared to the regular loans. Mortgage Broker Helps Get a Home Loan for the Clients Mortgage brokers help those candidates with casual employment find a home loan that suits them. These home loan experts have access to a number of lenders and they can compare the home loans on behalf of the candidate so that the candidate can avail the best home loan option. Mortgage brokers get a commission from the lenders. The service of the mortgage broker is free to the candidate with casual employment. There are many websites which facilitate home loan services from mortgage brokers. If you need home loans and you are self-employed then you can refer to relevant websites, relevant business loan broker online. Home Loan for Casual Employees If you are a casual employee in need of home loans then you require showing that you have been working steadily for the last two years from the date of applying for a loan. In this regard, you may require furnishing two years group certificates. However, if you are not earning for a long period of time then you may face problems availing loans as you may find it difficult providing proof of income. Comparing Mortgages for Casual Employees If you are a casual employee and applying for a loan from banks or other lenders then you require considering the following options while choosing your loan:- Documentation required These are no need of much documentation with a low doc loan plan when compared to full documentation plans. However, the borrower is required to meet the minimum documentation needed by the lenders. Interest Rate The low doc loans have higher rates of interests when compared to the regular home loans. To get the best home loan rates to visit relevant websites online. Fees The candidate applying for the low doc home loans require to look at the fees carefully and find the one that charges fees justifying the loan features as well as the loan interest rates. Interest Type As a candidate opting for low doc loans you need to compare instances, see whether the flexibility of a variable rate is suitable for your or the certainty of a fixed rate is suitable for you. Features While availing loans you require checking the loan features and you need to get the ones that are beneficial to you. These features can be offset discounts, flexible repayment options, redraw facilities. Advantages and Disadvantages of a Home Loan for a Casual Worker Advantages Availability Home loans are available for different types of casual workers. These casual workers can be freelancers and they can have fluctuating work hours, permanent positions. They can be teachers or nurses. You can avail a low doc loan if your income is taxed and you are in a position to show proof of your income. Options There are businesses which offer customers the options to choose the lender from a list of many lenders. These lenders specialize in home loans to casual employees. Flexibility If you have access to a typical home loan then it helps in setting up the repayment terms that work best with your fluctuating income. Disadvantages Higher Fees and Rates With respect to the low doc home loan, the fees are high and the interest rates are higher compared to those on regular loans. The Borrowers Often Require an Accountant In many instances, the lenders request the contact information of an accountant to verify the income of the borrower. If you don’t have an accountant then you need to hire one so as to sort out your documentation related to home loans. Risks Associated With Low Doc Loans Applying With Many Lenders for Home Loans If you are a casual employee then there are not many options available for getting big loans. Therefore as a candidate in need of loan, you may require doing research. Understand that applying for loans with many banks and getting rejected can have a negative impact on your credit ratings. Prior to filing an application, make sure that the lenders accept casual employees. Affordability While seeking a loan you as a borrower need to be sure that you are able to afford the terms of your home loan.