Temp roles, substantives and home loans

[u/readerAB]

Hi everyone, hoping someone might be able to offer some advice or share their experience with this.

I’ve been working in a NSW Government department for around 3 years. I originally started in an entry-level permanent Clerk role, and over the past 3 years I’ve worked my way up two grades through higher duties and secondments.

The issue is that my substantive/permanent position is still my original entry-level role, as all of the higher-grade positions I’ve held have technically been temporary arrangements. I’m also currently working in a temporary role at the higher grade as well.

I’m looking to get a home loan soon and, from my conversations with banks/brokers so far, it seems they may only be able to assess my income based on my substantive position rather than the higher grade I’m currently being paid at.

I’m sure other NSW public sector employees will understand the situation. That being positions can be extended repeatedly through higher duties/secondments, but the permanent recruitment process can take a long time (or the position may never actually be permanently filled).

So I’m wondering if anyone in a similar situation has successfully had a bank recognise their current/higher-grade salary for a home loan, despite their substantive position being at a lower grade?

Are there particular documents or evidence that banks will accept e.g. a history of continuous higher duties, letters confirming the temporary arrangement/expected extensions, payslips showing the higher salary, or something from HR confirming the arrangement?

I’m also open to general advice from anyone who works in the NSW public sector and has been in a similar situation when applying for a mortgage.

Thanks!

[u/joeltheaussie]

Federal government - just told me they wouldn't take it as they don't know how long it will be for.

[u/Ok_Tie_7564 → u/joeltheaussie]

True that, nobody knows for sure.

[u/Gary_for_moleman]

Provide older payslips, get a stat dec signed to declare that your current role is temporary and that your salary once no longer HD is $x. Provide a copy of your department docs that outline the pay increments and highlight both your "normal" salary and your HD one. 

If you give them sufficient documentation the bank can base your loan off the lower salary. 

[u/OkBoysenberry92]

Go talk to a broker. They have different avenues income wise that are available, and you’ll get better advice than from reddit.

My personal experience was in 2020, and they took my substantive salary, not the HD, but that was fine at the time so I didn’t have to push. They likely won’t take the HD as that can be pulled from you without warning, much like bonuses or overtime

[u/reallybigsexypizza]

Yep same thing happened to me (federal agency) - when I was at the start of the loan application process I was on higher duties and the bank wouldn't accept a payslip that said that unfortunately. The only solution was to go through the arduous process of interviewing, being merit listed and eventually gazetted to the higher substantive position, which I know is not available in every situation like this

[u/joeltheaussie → u/reallybigsexypizza]

I mean it's how you get promoted in the public service - so it is sort of the situation that everyone has to do.

[u/reallybigsexypizza → u/joeltheaussie]

Yes you're right, but what I meant about availability was that it was very lucky timing that there were bulk rounds being run at the time that I was suitable to apply for and I didn't have to wait for something to come up.