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Property investors with reduced working hours or receiving JobKeeper payments may be able to obtain loans for property purchases if they are able to provide certain documentation and savings.
Mortgage broker and Pink Finance owner Nicole Cannon said that some lenders may still approve loans for investors who currently have reduced hours or who are receiving JobKeeper payments, depending on what their individual situation is.
Ms Cannon explained that if investors on reduced working hours are able to provide the bank or lender with a letter stating when their full income will return and they have enough in savings to cover the income gap for that period, they may be able to get an approval.
“One of my clients, who is in a senior management position at a real estate firm, has had his hours drop by 40 per cent. For his pre-approval application, we’ve got a letter stating when his full income is going to be reinstated, which is in September, and he’s got enough in savings to cover the repayment gap [resulting from] his reduced income,” Ms Cannon explained.
“So, there are certainly ways around this, but its just knowing upfront exactly what you’re receiving now, what you’ll be receiving in the future and making sure that if you’re going to use your future income that you’ve got enough savings to cover the settlement period and [the period] up until when your full income returns.”
Ms Cannon also stated that while some lenders are allowing loans for JobKeeper payments, none of them are granting approvals for those on JobSeeker.
“Some lenders have also stated that they won’t be taking casual employees anymore,” she said.
Property refers to either a tangible or intangible item that an individual or business has legal rights or ownership of, such as houses, cars, stocks or bond certificates.