EverLend | Contract Work, Credit Cards, Good Brokers

21 Mar 2024 Podcast: Q&A – Client Asks Me Questions on Contract Work, Credit Cards and What Makes a Good Broker?

In today’s Q&A, Evelyn is sent a series of questions from a long term client.

She explains how lenders view contracted employees compared to permanent or full time employees. She also discusses the difference between a contracted employee and an independent contractor, who is actually treated as self employed.

Evelyn then looks at what makes a good broker, and some of the key criteria to look at when deciding if a broker is right for you, and will support your long term goals.

Finally she discusses how credit cards impact your borrowing capacity and credit scoring, and when this starts to become an issue.

If you would like to send in a series of questions for our next Q&A, feel free to email us at ⁠admin@everlend.com.au

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You Have My Interest provides information and educational content relating to mortgages, finance and property. You Have My Interest‘s content is general in nature and does not take into account the individual financial, legal or tax needs or objectives of its audience members.

It is not intended as a substitute for professional advice. Listeners should seek out a licensed professional to discuss their individual financial, legal and tax requirements.

If you need mortgage or finance advice tailored to your own personal situation, contact Everlend today for a free consultation. Everlend are authorised credit representatives of Loan Market Pty Ltd, Australian Credit Licence number 390222.

Podcast produced with Apiro

Please find a Podcast summary below with the interview highlights:

Evelyn begins her Q&A episode from the Yarra Valley in Victoria, sharing her excitement about the beautiful weather and her attendance at a friend’s wedding at a local winery. She answers questions from a client, offering insights that benefit a wider audience.

Contract Roles and Bank Assessment:
- Banks assess contract roles differently but often treat them like PAYG (permanent employee) income if the contract is stable and ongoing.
- Factors like contract continuity, history of rolling contracts, and written evidence of extensions influence lender favourability.
- Some lenders are more flexible, allowing pre-approvals with a signed contract and first payslip.
Good vs Bad Mortgage Brokers:
- A good broker is trustworthy, communicative, proactive, and solution-oriented.
- They focus on long-term goals, provide education, and guide clients through lender policies and post-settlement experiences.
- A bad broker may lack backup plans or settle for suboptimal outcomes.
Credit Cards and Borrowing Capacity:
- Lenders treat credit cards as fully drawn (e.g., a $10,000 limit is assessed as a $10,000 liability).
- High credit card limits can reduce borrowing capacity, but cancelling and switching cards once a year has minimal impact on credit scores.
- Avoid applying for new credit facilities during pre-approval, as it can jeopardise the loan application.

Evelyn concludes by inviting listeners to send in questions for future episodes and wishes them a lovely weekend.

21 Mar 2024 Podcast: Q&A – Client Asks Me Questions on Contract Work, Credit Cards and What Makes a Good Broker?

Please find a Podcast summary below with the interview highlights:

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