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Applying for a mortgage while on a fixed term employment contract - How does that work?

We commonly hear people say that it’s impossible to get a home loan when you’re on a fixed term contract but is that true? Read on to find out more!...

Every situation is different when it comes to fixed term contracts and the banks are pretty good at looking at the overall situation and applying some common sense logic around each unique situation. 

If you’re on a fixed term contract and applying for a home loan, the bank will look at a few things. 

  1. What is your employment history?

Some types of work and some roles in particular are more commonly structured as a fixed term contract - If you can show a good track record in maintaining employment in fixed term roles, this is a bonus. 

  1. How much time is left on your fixed term? 

The longer the term left on your contract, the better but if your fixed term ends soon, it’s all about what the plan is when you get to the end of your fixed term - which brings us to the third thing…

  1. What’s the plan at the end of the fixed term? 

Ultimately, the bank wants to know what happens at the end of your fixed term - Do you have another role lined up? Will your fixed term be extended? Has your employer offered you a permanent role?  It’s important that we have a good understanding of your plan when the term ends and how that might affect your income. 

So, it’s definitely not true that you can't get a home loan while on a fixed term but it's important to get in touch with one of our mortgage advisers so that we can communicate your history and the plan at the end of the fixed term to the bank! 

Don’t let your fixed term contract put you off your home loan application - Chat to us today!

Get in touch to find out more!


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