Information Technology is a quickly changing industry with many specialists choosing to work on short term projects rather than in regular jobs. In fact, IT contractors are by far the most common type of contractors that we assist to apply for a loan.

You would think that the Australian banks would be fighting over IT contractors, however they aren’t. Despite being well paid, well organised and often high net worth customers, IT consultants are more often than not declined by the banks when they apply for a home loan!

So what is the problem?

From a bank’s point of view an IT contract is temporary and could be let go from their job without any notice. The banks can’t tell the difference between a career opportunist that has chosen to chase a higher income and flexible working conditions from someone who has been forced to take whatever contracts are available.

As a result of this they have lending policies in place which require contractor to provide two years tax returns and to have confirmation that their contract will continue for at least the next 12 months. For most professionals, this simply isn’t an option! In particular many IT contractors have worked overseas and so cannot easily prove their prior employment history in the same line of work.

How can you get approved?

We know that most IT contractors are in high demand and usually have a regular flow of income. We don’t see IT contractors as a real risk and can assist you in getting approved for a mortgage!

Our mortgage brokers know which banks can accept consultants working on short term projects, self employed consultants that invoice their employer and people on fixed term contracts. Please call us on 1300 965 504 or enquire online to discuss your employment with one of our specialist mortgage brokers.

How much can you borrow?

Although most banks will restrict you to borrowing 80% of the property value, or will require you to apply for a low doc loan, we have two lenders that can consider lending up to 95% of the property value as long as you can prove your regular income using either payslips or invoices as well as a copy of your contract or agreement with your employer.

Best of all the interest rates are very competitive with the same negotiated discounts that are available with a home loan under a professional package.

You can find our how much you can afford to borrow by calling our mortgage brokers on 1300 965 504 or enquiring online.

Types of IT contractors

The Information Technology industry comprises a variety of jobs and roles. These include positions in:

• Programming
• Data management
• Software development
• Network Engineering
• Business Analyst
• Infrastructure Architect

Generally, these contractors are involved in both small and large scale projects and the contract duration extends to the completion of the project. In particular we see many customers with unique expertise (e.g. a particular programming language) that are able to negotiate higher pay rates due to the high demand for people with their skills.

Advantages of being an IT contractor

• The pay is usually higher than those that are permanently employed
• Business related taxation exemptions
• Ability to work independently
• Flexible working hours
• Can get many business related tax deductions
• High demand industry
• Option to work internationally
• Lucrative project management contracts available

Disadvantages of being an IT contractor

• Job is not as secure as that of a permanent employee
• Less employer provided benefits
• Uncertainty of future financial state
• Difficulty maintaining financial records and tax returns

Speak to a specialist today!

Our mortgage brokers can help IT contractors to get approved for a home loan. Please call us on 1300 965 504 or enquire online to discuss your employment with one of our specialist mortgage brokers.