Hustling for a home loan? How shift work can help and hinder your application

“Side hustles” have long been a way to diversify and compliment your primary income stream and many of us who have felt the financial squeeze of COVID-19 may have looked to side hustles to help make up for sudden short falls in income.
Jessica Pilon-Summons

“Side hustles” have long been a way to diversify and compliment your primary income stream and many of us who have felt the financial squeeze of COVID-19 may have looked to side hustles to help make up for sudden short falls in income.

So what effect, if any, do all those uber eats shifts have when applying for your home loan?

We asked two of our expert brokers to weigh in.

The bad news

If you’ve recently started a side hustle and were hoping to include it as an income in your home loan application, it is unlikely this will be a successful strategy.

Amanda Denham, uno broker, cautions “unless you have 2 years of ABN and tax returns it is very unlikely that lenders would consider side hustle incomes.

Especially in the wake of COVID, restrictions with self-employed are even bigger and there is not much room for us to negotiate on that as lenders are updating their policies with stricter requirements, unless combined with a long term, stable PAYG income application.”

The good news

But it’s not all bad news for your side hustle, uno broker, Jay Ahluwalia, says the upside to having a side hustle is “Where a side hustle can come in handy is to build up a deposit quicker or to pay down existing debts.

A side hustle is something that can bear fruit with patience and planning.

Set aside an account for everything you generate from the side hustle, to build a bigger deposit or knock out other debts.

If you can bring down your LVR it can mean a better interest rate, less interest paid over the life of the loan and perhaps a lower LMI.”

The verdict

While you won’t be able to claim your recent side hustle as a reportable income on your home loan application, don’t put down your delivery bag just yet. Side hustles can accelerate your savings for a deposit and ultimately help you pay less over the life time of your loan.

If you need help getting started with your home loan application, our expert broker team can help, click HERE to book a time to speak with one of our home loan experts. 

We’ve also compiled a helpful toolkit for First Home Buyers that answers all the important questions you need answers to – and more – to help you make sure you’re informed and in the best position possible when you’re ready to make the leap and buy your first home.

Start your journey here with our Guide to Buying Your First Home.

Jessica Pilon-Summons
* Three year fixed rate, owner occupier, P&I loan with a maximum LVR of 95% and a loan amount >$150,000. Lender rates and products may change. We cannot suggest you remain in or switch to any loan until we complete our assessment. Fees and charges apply. ^ WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rate is calculated on the basis of a loan of $150,000 over a term of 25 years. ± All loan applications are subject to uno assessment and lender approval. uno does not guarantee that it will be able to find a customer a better loan than the one they currently have or to save them money.