Working in the mining industry offers many rewards for those with skills that are in demand. There is no shortage of available jobs, making the mining industry a very popular choice of work in Australia.

Miners may work on either a:

Contractual basis: where the miners contract duration is determined by the length of the project. When the project is complete the contract is terminated. They leave the site and receive their payment at key milestones.

Rotational basis: projects are completed on site, the miners then return home for a short period of time before resuming a new project or stay at the site, under the same contract. These are often four weeks on two weeks off contracts and include a Living Away From Home Allowance (LAFHA) and a travel allowance.

How can you get approval for a home loan?

Australian banks rarely approve loans for mining contractors because they see some key risks with this type of employment:

• Will your employment be ongoing / or your contract renewed?
• Will your LAFHA continue if you buy a home in the area?
• Will the property you buy be in a remote or high risk location?
• Will your future contracts have the same level of pay?

The good news is that some banks take a common sense approach to lending to mining industry professionals. The can understand your payslips even if you are on rotation, will use your allowances in their assessment and can base their assessment on the income you are current receiving not an average over the last two years.

Our specialist mortgage brokers are experts in helping mining professionals to get approved for a home loan. Please call us on 1300 965 504 or enquire online and we can let you know how much you can borrow and which lenders you qualify with.

Does the duration of your contract matter?

The length of the contract varies according to the type of work or project undertaken. Typically, those in the mining construction industry are employed for longer periods of time. Building a new mine can take from 2-7 years! However, once the mine is built, many of the contracts are automatically terminated. These contracts are also called fixed term contracts and are the most common in the mining industry.

There are lenders that can consider all contract durations, including contracts with a known end date.

Types of mining work

The mining sector is one of Australia’s largest industries and a huge contributor to the Australian economy. Many multi-national companies operate in Australia including, BHP Billiton, Rio Tinto, Fortescue Metals and Newcrest. The mining industry is of huge export importance and jobs are always in high demand. Those working on a contractual basis may take on various roles including:

• Mining Engineer,
• Metallurgist,
• Mine Surveyor,
• Exploration Geologist,
• Mine Geologist,
• IT Consultant,
• Maintenance / Mechanic,
• Mine Manager, and
• Mining construction.

Advantages

Most individuals that work in the mining work receive generous bonuses, high salaries, allowances and other benefits included in their remuneration packages. The work is always in high demand and the jobs are plentiful. Due to the nature of the work, the contracts are usually long term and many mining companies cover workers expenses, including housing and travel.

The downside!

Despite the high salaries and other benefits, banks are reluctant to lend to anyone in working in primary production or the resources sector! Major lenders generally approve candidates that are committed to permanent employment, with a stable income and consistent flow of cash.

Most mining contractors can generally demonstrate an ability to manage their finances, yet struggle to get approval for a home loan! Consequently, some mining contractors may face too many hurdles and ultimately cannot secure finance to purchase or invest.

How we can help!

We understand that those working within the mining industry generally have regular work and lucrative contracts. Therefore, we will present your application in the best possible way.

Please call us on 1300 965 504 or enquire online to get specialist advice from one of our mortgage brokers. We commonly deal with contractors and will submit your mortgage application with the right lender to ensure approval!