Page 46 - Smart Money

Chapter 2

and you have a lease agreement in place, the bank will use the lease to
confirm rental income. Another method of confirming rental income is
through a valuation.

Proof of your permanent residency is required for first home buyers,
because you can’t get the first home buyers’ grant unless you are a
permanent resident of Australia.

Centrelink paperwork is required if you are using family tax A and B to
assist your affordability. We need to be able to confirm what entitlement
you are receiving. With regard to that, if your children are over 11,
some lenders will pro rata the benefit amount allowed for servicing. The
reason for this is, if the loan is taken over a 30-year term, you will not be
receiving those benefits for the entire term of the loan.

The last one, a breakdown of your monthly expenses. This will show what
you are spending on general day-to-day living.

If you are employed on a casual basis, most banks need to see continuous
employment for at least 12 months; however, there are some banks that
will accept just three months. If you are a permanent part-time employee,
they will accept all the income, and some banks, depending upon the loan
valuation, will accept one day in the job as long as you have a pay slip.
Others might be more stringent and say you have to have been in the job
for three months or six months before they’ll accept that income.
That’s why using a mortgage broker is beneficial, because we’ll know
which banks will accept your income and how much of it, as well. Banks
tend not to like causal employment; they prefer you to have a permanent
part time or full time job.

Key Point
You can still get a loan if you are casually employed, you just have limits
on which banks you can go through to get your loan. Casual could also
mean contract. You could be up in the mines earning $80,000 a year,
but that is still casual work.

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