Getting a home loan with a fixed-term contract is hard.
However, there are some exceptions where sufficient collateral has been provided for the house loan bank, so that the temporary employment contract no longer impedes a house loan.
Building loan. This is because, despite the fixed-term contract, the income is high. What options are there for getting a home loan with a fixed-term contract?
- If there is another borrower with a permanent contract, the chances increase.
- High income despite a temporary employment contract.
- Prospect of extension
- If there is a prospect of an extension of the employment contract, or if the employer has already given a permanent position, you can contact the employer with a corresponding letter, which you may be able to present to the home loan bank.
Equity capital is lacking
- the mortgage lending is unfavorable
- hardly any collateral can be provided.
If you are at the beginning of your career as a single with a fixed-term contract, it will be difficult to find a suitable home loan. In any case, it makes sense to seek an open discussion with the bank advisor.
Under no circumstances should you try to leave the financier in the dark about a time limit, because pretending false facts can quickly become a boomerang.
- Banks assess the importance of the temporary employment contract quite differently. It is therefore by no means a mistake not to be discouraged by the first rejection. Perhaps the next adviser is already open to the house loan application.
Credit Bureau, for example), the temporary employment contract is not very trust-building.
Home loan with a temporary employment contract – is that possible?
In principle, a home loan is not an exclusion criterion for a temporary employment contract. If there is a second borrower with a permanent contract, the likelihood that a home loan will be granted increases. In addition, the employer should be asked whether the temporary employment contract exists with a prospect of permanent employment. If so, the employer can write a corresponding letter for the bank. If there is also a high income or there is sufficient equity, a home loan can also be granted with a temporary employment contract.
How difficult is it to find a home loan with a fixed-term contract?
When looking for a house loan with a fixed-term employment contract, it is important that you make a detailed income expenditure calculation yourself beforehand and that you are clear whether it will be possible to pay the home loan installments even if you lose work after a fixed-term contract expires will be possible. If you can present this to the bank with the house loan, it is possible to get a house loan.
Temporary employment contract: What do I need for a home loan?
- Prospect of extending the employment contract (best confirmed in writing by the employer)
- Collateral like existing real estate or inheritances
- high income in temporary employment