A hand drawing with a marker circling the words 'work part time' in reference to building your credit score

Part Time Or Variable Employment Mortgages

Matthew Jackson Self Employed Mortgages

Part Time Or Variable Employment

Hello there,

With this blog I will be going into what the banks will allow and require in regards to someone being employed part time or with a variable income.
Part time and variable income can be two very different items. Part time income could be casual work picking up as many hours as you can such as in the case of a healthcare worker or it could be minimal hours or a guaranteed amount of hours less than full time.

For part time where you are not guaranteed a minimum amount of hours the bank will normally want a minimum of two years at your job so they can average the income you receive. If you all of a sudden receive a full time position and you are not on probation then we can use that full time income even if you haven’t been there two years yet.
Part time income may be used if you are at a job where you are guaranteed a certain amount of hours. Such as 30 hours a week at $20 an hour, we would be able to use that as an income once you aren’t on probation. Any hours above that though that you work we wouldn’t be able to use unless there is a two year history or if your employment changes and you are now guaranteed more hours.

Variable income could be classified as part time but we will be focusing on incomes such as sales, bonuses and employee income.
If your income is truly variable and there is no guaranteed portion from your employer than we would need a two year history of it. However if you have a guaranteed portion such as $30,000 a year plus commission or bonuses then we could use the $30,000 before you hit your two years. This is the same for most variable incomes as there is no guarantee for lots of sales jobs, so it is best to plan in advance.

Keep in mind if you started in March of one year and worked that full year and the next we could most likely use those two calendar years even though you haven’t worked a full two years. That would just depend on the bank and how strong your credit and previous work history is. There are always exceptions to any rules and these scenarios could have many of them. It always depends on your exact situation and once we know if we can figure out if there is an exception we could try for.

Hope this helps and please contact me with any questions,

Matthew Jackson

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