Subcontractors Home Loan

  • These types of loan are suitable for PAYG contractors, self employed contractors and subcontractors.
  • PAYG contractors have tax withheld and super as well as having sick leave and holiday leave. They can be employed on a fixed term, short term or long term.
  • Self employed contractors are normally sole traders with registered ABN. In some cases, self employed contractors set up a trust or company and are employed on PAYG basis. Most lenders required the self employed borrowers to be in the current role for minimum 2 years.
  • Most lenders consider the contractors as casual employment because they think contractors do not have stable employment; their contracts can be cancelled anytime.
  • Depending on the employment contract, you can borrow up to 95 per cent plus lender mortgage insurance (LMI).

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