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Policy Party

Policies, Policies, POLICIES! It’s everything policies. We’re gearing you up to understand 6 of the best policies we think are amazing here at The Newstead Group. These policies include anyone from 90-day casuals to business directors, there really are policies for everyone.


Do not fret if these don’t match your unique circumstance, there are a multitude of others to choose from and your broker will find the best for you.


Self Employed

This is one of the policies that will assist a self-employed applicant to get a home loan. If you are self-employed for less than two years, you may still eligible to get a home loan.


Under a self-employed basis you must have your ABN registered for a minimum of 18 months, although you don’t have to be trading the whole time. As long as you can provide 1 year of full financials from the business you will be eligible.


If it is a continuation in the field you were employed under in the past lenders can see your circumstances in isolation and you may also be eligible.


Directors Salary

Are you a director of a company? Here’s a policy that will help you to secure a home loan. If you are running for business for 18 months minimum (you don’t need to be trading for 18 months), as the director of your company you, can pay yourself a salary for six months. Lenders can use this salary to assess your lending potential.


You just need to provide:

  • Proof in the form of a payslip.

  • 6 months ‘Year to Date’ in combination with single touch payroll.

Or

  • Accountants letter and a payslip that shows you can continue to pay yourself that salary – this helps to warrant continued honoured repayments.

Or

  • 6 months’ salary credits to a bank account


PAYG – Essential Services

This is a supported policy for essential service workers wanting to get a home loan. Essential service workers often work high levels of overtime and receive shift allowances for afternoons and evening work. Some lenders will shave that down by 20% to 80% for this income as these circumstances may not be regular and ongoing. However, this policy allows lenders to use 100% of all overtime and allowance income earned. This policy is only enacted by a small number of lenders, and will result in a higher borrowing capacity.


This policy extends to: Nurses, health care professionals, police, prison officers, public transport operations, and some other fields across the essential services network.


Casual Income

This is an extremely niche policy that provides upgraded support for casual employees. Previously you had to be in the casual role for 12 months, but some lenders can now support 6 months.


Here’s a scenario. Let’s say it is 2001 and you are working in a casual position in a bar while studying through your university degree. After you get your degree you secure a job in your field and stay in this role for 20 years. Fast forward 20 years, it is 2021 and you are let go of your job due to COVID-19. You made the decision to go back to working casually at a bar. You are able to use this policy as you have previously worked in this bar for more than 12 months 20 years prior. The bank may accept your income from this industry and you may get a home loan.


The takeaway point from this is if you are a casual, you are not doomed.


Probation Policy (Somebody New to a Role)

This policy allows you to secure a home loan if you are currently on a probation period. If you start in a role and receive your first payslip, this is a policy you may be able to take advantage of.


This might sound logical, but this is quite a niche policy. Luckily some financiers who don’t have the clear policies in place may allow a waiver dependent on experience in the field. At times we find it can be easier to work with the policies available, rather than trying to tweak it and get specific exceptions even if they might be available.


Professional Package Waivers: Medico

This is a policy in place for medical workers. You may be fresh out of studying, deep into medical school debt and not really saving a substantial amount of money in this time. Even though you are starting to earn a high, stable income, you are now playing catch up on debt and income, meaning you might not have the money to support a 20% deposit. On top of this, you also may not meet the criteria for some other policies with income thresholds for these grants and schemes.


This policy will allow you to put down a 10% deposit and avoid lenders mortgage insurance. There are also some lenders who can waive LMI at 95% LVR (5% deposit) for new-to-bank medical professionals. The eligibility list is a little shorter for this policy but extends to: Medical practitioners, dentists, specialists, chiropractors, optometrists, and vets.


Wondering what our mortgage brokers can offer you? Get in touch with us here at The Newstead Group and we would be happy to answer any questions you may have.



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