Your job pays the bills — but your job title might make some of those bills bigger. Lenders and car insurers look at customers' occupations when setting interest rates and premiums. Although credit,income and debt matter more to lenders, your job gives them clues about your borrowing habits.
Employment Type and Loan Applications
Besides the number on how much you earn, the bank also looks at: your job stability. the nature of the industry you are employed in. the length of time you have been in the current job.
Banks will need documents to proof of your income, including recent payslips or Pay As You Go statements. If you attempt to overstate your income, the bank will easily be able to check this against the other information you've provided.
Payslips
Your two most recent payslips clearly showing employer details and net income.
If you work as a casual, lenders will look at your credit score, employment history, income, expenses and other debts to determine whether you have the ability to make repayments.
Most lenders like to see that you've been in your current job for at least three months, and at a minimum, completed any probationary period. The bank may contact your boss to confirm your employment status.
If you're a new employee, you can still apply for a personal loan. That said, it may be harder to get approved since lenders want to know that you earn enough money to repay them AND that your income is stable enough to meet regular repayments. Most lenders prefer that you have been in your job for at least 3 months.
Deposit savings
The minimum required deposit is 10%, but aim for 20% if possible. If you're borrowing more than 80%1 of the property value, you'll need to take out Lenders' Mortgage Insurance or Low Deposit Premium.
Lenders will only factor wages deposited into your account by an employer or other consistent income source. If you're a worker earning cash-in-hand wages and needing a loan, this income won't count towards a same-day loan.
Almost all banks require payslips in order to assess a home loan application. Without this essential information about your income, it presents a much higher risk to the lender. This usually means that you'll have to pay a higher interest rate or be declined outright but not every lender is the same!
Types of Suspicious Activities Banks Look Out For
Large Cash Transactions: Banks may monitor cash transactions that exceed a certain threshold, as these transactions can be indicative of money laundering or other illegal activities.
Employee records are private and confidential. Generally, no one can access them other than the employee, their employer, and relevant payroll staff.
Lenders need to determine whether you can comfortably afford your payments. Your income and employment history are good indicators of your ability to repay outstanding debt. Income amount, stability, and type of income may all be considered.
Paying wages in cash is legal and may be more convenient. Some businesses deliberately use cash transactions (for example, pay their employees 'cash-in-hand') to avoid meeting their tax and employee responsibilities.
There are no laws limiting the amount of cash you can keep at home. This makes sense as many businesses, especially retail stores, keep large amounts of money with them merely as floating cash.
In general, the easiest loans to get approved for are ones that—unlike traditional personal loans—don't require a credit check. For example, payday loans, pawn shop loans and car title loans typically have much less stringent credit requirements (if any).
We offer loans ranging between $500 and $5000 for those already on Centrelink or Youth Allowance. However, please keep in mind that it's your responsibility to ensure that the amount of money you receive won't affect your benefits. Get more information on our loans for people who are unemployed.
$70,000 salary
A $70,000 annual gross income with a mortgage at 5.99% p.a. equates to a loan amount of up to $391,222. With a 10% deposit contribution, the maximum affordable property price would be $434,691, or with a 20% deposit $489,027.
Casual employees do not have to give notice. However, you may consider giving notice as a matter of courtesy, especially if you will be relying on a reference from the employer.
Small business employers don't have to offer to convert their casual employees to permanent employment. An eligible casual employee working for a small business employer can request to convert to permanent employment at any time on or after their 12-month anniversary.
Most lenders will require that you've been at your full-time or part-time job for at least three months, a casual job for at least six months, and if you're self-employed you may need to provide 12 months of tax returns. A lot depends on your circumstances, and how lenders view home loan applications.
Leave entitlements differ for full-time, part-time, casual workers and contractors. Casual workers are not entitled to annual leave or annual leave back pay. Casual employees can convert to a permanent position after 12 months if they wish to do so unless the employer has reasonable grounds to refuse.
Casuals receive a higher rate of pay, which they may prefer than accruing leave entitlements. Casual workers do not need to apply for leave and have the ability to take extended holidays or time off work. Employers do not need to provide casual employees with notice of termination or redundancy pay.
Lenders will be able to examine your loan enquiries over the last five years, the details of any current debt you have, the names of credit providers you have applied for, and the number of times you opened and closed credit cards, loans, and postpaid mobile plans.