Help! My bank is ignoring my second income!
Do you have a second job, a third job or even multiple jobs or income sources?
If you do, you may find it challenging to convince your bank to include & assess all your source of income from all your jobs.
But which banks take that view, and how can you ensure that all your income counts? Read on to find out how to get your loan approved.
How much second job income will the bank accept?
Most banks will only accept income from an additional job if you have been in that job for 12 months and are not working over 60 hours per week in total. Even then, they are likely to accept only 50% of your income from your 2nd job. If you have multiple jobs (more than 2), they often ask for your tax returns and average the income received over the last 2 years.
How much can I borrow?
With our best lender, you can borrow up to 95% of the property value if you have multiple income sources. This is incredible compared to most lenders who can only approve loans for less than 80% of the property value for people with a second job or who will decline the loan outright!
Which lenders will accept 100%?
Not all lenders treat second job income in the same way!
Our best lender for 2nd jobs can accept 100% of your income from all of your jobs as long as you have been employed for at least 3 months. If you have not been employed for 3 months they can sometimes consider income from brand new jobs if you have an excellent credit history.
Do you need help to get a lender to assess the full income from both of your jobs?
Please enquire online to discuss your situation with one of our mortgage brokers.
What do lenders think?
Most lenders are reluctant to include the income you earn from your second job when assessing your ability to afford a loan.
As a result, you may be told that you “don’t earn enough”, “can’t be working part time” or that you “don’t meet bank policy” and your loan may be declined.
However, this bank policy makes no sense at all. People with multiple income sources and career options have a stable and diverse source of income, so they are actually a lower risk to a bank!
If you have a second job and want to make sure that all your income sources are included, please contact us on 1300 889 743 or enquire online and our specialist mortgage brokers can help you apply with the right bank who will consider the income you earn from a second job.
Why are the lenders so conservative?
Australian banks are conservative when assessing home loans for people with multiple jobs because they believe that their income is more likely to fluctuate and that their employment prospects are far less stable.
In our experience, people with several jobs are hard workers, are motivated to save a deposit for their home and are far less likely to run into financial hardship when repaying a mortgage.
We know which lenders will approve your mortgage, so don’t waste time applying with banks that may not treat your second job income as stable.
Contact us today on 1300 889 743 or enquire online, and our expert team will help you get approval.
What is a second job?
A second job serves as an additional form of income, on top of regular hours of work.
You may be working in a full-time or part-time job, but need extra funds to cover all your expenses.
Why do people get a second job?
With the price of living escalating, many people are getting a second job to cover household expenses. Often the income derived from one job is insufficient to do so.
The second job maybe in the same industry or may be alternative work in another sector.
Alternatively, some people may want to learn new skills, try out a new career or work in a new field.
A second job can provide individuals with the opportunity to fulfil life-long goals or a job that could potentially turn into a full-time career.
Some people take up a second job to pay for their lifestyle, finance trips overseas or large purchases or pay off existing or future debt.
Working a second job? To ensure that 100% of this income is included in a serviceability assessment, please call us on 1300 889 743 or enquire online today!
Types of second jobs
Casual hours are offered across a variety of industries. These include:
- Retail
- Farming & agriculture
- Hospitality
- Education
- Trades
- Beauty industry
- Domestic services
- Sales
Most employers offer flexible hours, and many employees may receive cash remuneration.
If you have taken up a second job and are wishing to apply for a home loan, please call us on 1300 889 743 or enquire online today. Our expert mortgage brokers can assist you in applying for a mortgage!
Tips for those working in a second job
Working more than one job can be very demanding!
There can also be a lot of additional responsibility involved.
If you are working a second job, make sure you:
- Check your employer’s policy
- Declare all your second job income
- Look after your health
- Ensure you get enough sleep and leisure time
Applying for a home loan? Let us make it easy for you! Enquire online or call us today on 1300 889 743 to speak to an expert mortgage broker who can help you get approved!
Apply for a home loan
Here at the Home Loan Experts, our mortgage brokers have extensive knowledge of the guidelines used by Australian lenders when assessing your income. Please enquire online or call us at 1300 889 743 to discuss your situation with a mortgage broker.