- Home loan type: casual employment, gifted deposit, genuine savings, no deposit, first home buyer grant (FHOG)
- Customer goal: Get approved for a home loan with casual employment and a gifted deposit.
- Loan amount: $207,000 (86% of the property value inclusive of Lenders Mortgage Insurance (LMI))
The story
Michelle had been working for The Royal Society for the Prevention of Cruelty to Animals, Western Australia (RSPCA WA) on a casual basis since October 2015.
She lived with her parents (rent-free) but wanted to move out and buy her own place.
She had saved up a decent amount in her bank account and had invested in shares, both of which she planned to use as the deposit.
Michelle wanted to buy a newly-built two-bedroom apartment in Butler, WA that was listed for $240,000.
She hoped to borrow $207,000 at approximately 86% Loan to Value Ratio (LVR) to cover the purchase of the property plus any additional costs involved.
The problem
Even though she had a good Equifax score of 960, her income alone was not sufficient to afford the loan amount.
Her casual employment status meant income calculations could only be made for 46 weeks instead of the standard 52 weeks, further limiting her borrowing capacity.
She considered using her mum as the second applicant to meet the “serviceability” requirements, which is a bank term for your borrowing power.
The problem is, it would mean she wouldn’t qualify for the First Home Owners Grant (FHOG) in WA.
Even though she had worked really hard to save a deposit, that was not going to be enough to get her over the line.
The solution
After consulting with Home Loan Experts mortgage broker Manish Rana about her options, she spoke with RSPCA WA and was able to land a permanent full-time position which made for a substantial rise in her income.
Her new income alone could service the home loan which meant that she didn’t need her mum as the second applicant and could now also qualify for the FHOG.
What also worked in Michelle’s favour was her long work history with the same company.
She just needed to wait for her next payslip as proof of her new income and employment situation and provide this with her mortgage application.
With the combination of her savings, the grant, and a $15,000 gifted deposit from her mum, she got approved for a home loan.
A happy ending
Michelle moved out of her parents’ house and into her brand new apartment.
She still works for RSPCA WA and enjoys nothing more than caring for animals.
Let us help you achieve your home buying dreams like we helped Michelle.
We’re experts at assisting people with unusual employment including those with casual jobs.
Call us on 1300 889 743 or fill in our free assessment form to start your home buying journey today.