By Graeme Salt
Gig economy and casual employees can still get a mortgage – if they know where to go.
Two surveys show how jobs have changed – with significant implications for getting a mortgage.
- There are 2.4 million casual employees (19 per cent of all employees) according to the Australian Bureau of Statistics
- The Australian freelance economy is booming with over 4.1 million workers – equivalent to one third of the national workforce according to the Australian Business Journal
In the past, banks have struggled to lend to would-be borrowers in more precarious positions such as these. But increasingly, they are recognising that the world of work is changing.
Many Australians have portfolio careers or maybe a side hustle in addition to their regular job.
As the gig economy has developed, companies such as Uber and AirBnB provide statements to be used in tax returns demonstrating how much someone has earned.
Armed with this information, some banks can be surprisingly flexible in how much they will lend would be homeowners.
And, many of these roles can be well paid. According to the Australian Business Journal:
- Software development and tech roles (36.18 per cent) dominate the Australian freelance market
- Over half (52 per cent)of online gig workers who rely on this as their primary income have a high school education, while (20 per cent) hold a bachelor’s degree.
At Origin Finance, we are currently arranging finance for a FIFO worker who earns $250k – over multiple casual contracts. Some banks have said ‘no’.
But there are some regular banks that get his position and are happy to lend.
If you want to understand how a bank may lend to you in your employment situation, please feel free to get in touch.
Graeme Salt is an award-winning mortgage broker. For a no-obligations consultation on your lending needs, please contact him on 02 9922 5055.
