Mortgage without a permanent contract - Everything you need to know

Can you get a mortgage without a permanent contract?

Yes, you can. Even without a permanent contract, it is possible to get a mortgage. Lenders are increasingly looking at your financial situation rather than just a permanent contract. This is good news for starters with a temporary contract, flexible contract or as a self-employed person.

When applying for a mortgage, the lender pays attention:

• Your current income
• What you have earned over the past few years
• The possibilities for your future income

With documents such as an employer's statement, a perspective statement or financial reports, you can show that you can pay your monthly expenses. Many banks have become more flexible, especially if you put in your own savings or opt for the National Mortgage Guarantee (NHG).

Getting a mortgage with a temporary contract

You can get a mortgage even with a temporary contract! Many people think that only a permanent contract counts, but that is no longer true. Lenders today look at your financial situation and whether you have enough income security. Can you show that you can bear the monthly expenses? Then you definitely stand a chance of getting a mortgage. You can easily prove this with an employer's statement or letter of intent.

What is an employer's statement?

An employer's statement shows what your current contract and income are. In it, your employer can also indicate if they plan to convert your temporary contract to a permanent one. This is called a letter of intent. Lenders see this as a strong signal of income security and trust that you will earn enough to pay your mortgage in the future.

Tip: Ask your employer to fill out the letter of intent completely and without errors. An incomplete statement can cause delays in your mortgage application.

Helpful tips for starters

Want to improve your chances of getting a mortgage with a temporary contract? Follow these practical steps:

• Request a letter of intent. Discuss with your employer the possibility of converting your temporary contract to a permanent one in the future.
• Collect your financial documents. Consider pay stubs, annual statements and an employer's statement. This shows you are employed and your income is stable.
• Keep your expenses in balance. A clear financial situation strengthens your mortgage application.

Suppose you have been working at the same company on a temporary contract for three years. Your employer indicates that they plan to extend your contract to permanent employment. Along with your recent pay stubs and a positive employer's statement, you have a good chance of getting a mortgage.

Getting a mortgage as a flex worker

You can also get a mortgage as a flex worker. Nowadays, some lenders accept a perspective statement as proof of your income security. Do you work through a temporary agency, in flexible employment or through a payroll construction? Then you can prove with the right documents that you can bear your mortgage expenses.

Tip: Compare offers from a number of lenders. Not all banks have the same terms for flex workers, so it pays to research where you have the best odds.

The role of a perspective statement

You can request a perspective statement from your employment agency. This document shows that you are likely to have a stable income in the future. Lenders see this as a sign of security and use it to assess your mortgage application. A perspective statement is ideal for:

• Flex workers who have been working through the same employment agency for at least one year
• Workers without a permanent contract, but with a stable work history

Perspective Statement Application

Applying for a perspective statement is easy. Just follow these steps:

1. Contact your employment agency and ask about the conditions.
2. Collect recent documents such as your pay stubs and employment contract.
3. The employment agency will assess your employment history and chances of stable income.
4. If your statement is approved, you can use it in your mortgage application.

For example, have you been working through the same temp agency for two years and have a stable work history? Then you can show with a perspective statement and your pay stubs that you have income security. This will increase your chances of having your mortgage application accepted.

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Getting a mortgage with 0 hours contract

Did you know that you can also apply for a mortgage with a 0-hour contract? Although this type of contract offers less security than permanent employment, lenders today look primarily at your income history and work stability. Can you show that you regularly earn enough? Then a mortgage is definitely possible.

The most important thing is that you can prove your average income for the past few months and that your employer completes a clear employer's statement.

Proving income with a zero-hours contract

Lenders will evaluate your mortgage application based on the following points:

• Your average income over the past 12 months. This shows how much you earn on average and whether this is enough to meet your mortgage expenses.
• An employer's statement listing your hours worked. In it your employer indicates how many hours you work on average and whether there is structural work. This helps the lender get a better picture of your situation.

Tip: Make sure your income is stable in the months before your mortgage application. This will make your application stronger and more convincing.

Suppose you have worked an average of 32 hours per week for the past 12 months and received a steady income. Your employer fills out an employer's statement confirming your hours worked and regularity. With this information, you can show that you earn enough to pay your monthly mortgage payments.

Getting a mortgage with benefits

Yes, you can apply for a mortgage even with benefits. Lenders today look not only at a fixed contract, but also at the stability of your income. If you can show that your benefits are sufficient and stable, you have a chance of getting a mortgage. If you can supplement your benefit by providing additional security with savings or additional income, you definitely stand a chance of getting a mortgage.

Which benefits count?

Not all benefits are included by lenders. The following stable benefits often count when applying for a mortgage:

• An unemployment benefit only counts if you supplement it with other income or savings.
• A WIA benefit is appropriate if you can show that it is structural and stable.
• A WAO benefit is accepted if it is permanent income.
• An AOW or pension can count, if you can back it up stably.

Conditions and restrictions on benefits

To apply for a mortgage with benefits, you must meet a number of requirements. These tips will help you make your application stronger:

1. Your benefit must constitute a stable income. Lenders will only accept benefits that are sufficiently high and structural. With temporary benefits, such as unemployment benefits, you need additional collateral to make your application stronger.
2. Providing additional security can increase your chances of getting a mortgage. Consider savings, home equity or a partner who has additional and stable income.
3. Documentation is essential to support your application. Lenders often ask for a UWV insurance notice so they can verify the stability and amount of your benefits.

Suppose you receive WIA benefits and also have savings with which you can finance part of the house. With this combination, you can show that you can bear your mortgage expenses. This gives the bank more confidence in your application.

Tips to get mortgage without a permanent contract

Applying for a mortgage without a permanent contract can seem difficult, but with the right preparation, you'll make a strong impression with lenders. They look especially at your financial stability and income security. These smart steps will increase your chances of getting a mortgage, even without a permanent contract.

1. Request an employer's statement

Are you working on a temporary contract or as a flex worker? If so, an employer's statement or perspective statement can provide additional assurance to lenders.

• An employer's statement shows the current form of your contract. This lists your income and hours worked. Ask your employer to include a letter of intent as well, stating that there is a chance of a permanent contract. This provides additional assurance to the lender.
• Do you work through a temporary employment agency? Then the temp agency may issue a perspective statement. This document confirms that your employment opportunities are sufficient to maintain a stable income. The perspective statement foundation guarantees the assessment of your employment history and future opportunities. This gives lenders confidence that you can carry your mortgage payments.

2. Demonstrate your average and current income

Lenders want to see that you can afford the mortgage payments now and in the future. Therefore, demonstrate your current income as well as your average gross annual income over the past months or years. Therefore, collect proof of your income:

• Provide recent pay stubs (from the last 3 months)
• Provide your annual statements to show your income history.
• For self-employed people, use your profit and loss statements to calculate your average income over the past few years.

Tip: Make sure your income is stable as much as possible in the period leading up to your mortgage application. This will strengthen your position.

3. Save for a higher deductible

The more of your own money you can put in, the lower the risk for lenders. This can significantly increase your chances of getting a mortgage. You demonstrate a lower risk to lenders by:

• Putting aside extra money, which makes your application stronger
• Using savings as a buffer to mitigate any risks to the lender.

4. Take advantage of National Mortgage Guarantee (NHG).

The National Mortgage Guarantee (NHG) offers both you and the lender additional security. For example, NHG covers the risk if circumstances prevent you from paying your mortgage payments, such as unemployment or disability.

• By using NHG, you demonstrate that you are making a conscious choice to be financially secure.
• With NHG, your mortgage application is more likely to be approved.

Did you know? With NHG, your application is more likely to be approved and you often pay less interest.

5. Work with a mortgage broker

A mortgage broker can guide you in gathering the right documents and help you make your application as strong as possible. A mortgage consultant will help you with the following points:

• Knows the requirements of different lenders and how best to present your situation. He can also compare different mortgage lenders.
• He or she will help you prove your income determination wage employment or calculate your average income if you are an entrepreneur.

Tip: Good preparation saves time and increases your chances of a successful application.

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Frequently asked questions about a mortgage without a permanent contract

Do you have questions about applying for a mortgage without a permanent contract? Or would you like to know what the options are if your income is irregular or was lower in the last year? Here you will find clear answers to the most frequently asked questions.

Can I take out a mortgage if my partner does not have a permanent contract?

Yes, you can! Lenders look at joint income. Your partner's temporary or flexible income can also count, provided it is stable and provable.

Important:

• Provide documents such as an employer's statement or perspective statement to prove your partner's income security.
• Combine your partner's income with your fixed income or savings to make your application stronger.

Can I apply for a mortgage without a letter of intent?

Yes, that is possible. A letter of intent does provide additional security, but without a letter of intent you can use other documents, such as:

• An employer's statement.
• A summary of your average income for the past few months.

Why do you need a letter of intent for your mortgage?

A letter of intent shows that your employer intends to convert your temporary contract to a permanent one. This gives lenders more confidence in your financial stability.

Don't have a letter of intent? Then use an employer's statement and a summary of your average income to show that you can meet your mortgage expenses.

Can you apply for a mortgage without a permanent contract?

Yes, you can! These days, lenders look primarily at income security and stability. Are you working on a temporary or flexible contract? With these documents you can show that your income is sufficient:

• An employer's statement.
• A perspective statement (for temporary workers).
• Pay stubs and annual statements.

Tip: Build a strong file with recent documents to strengthen your application.

Can you borrow if you don't have a permanent contract?

Yes, you can. Lenders pay particular attention to your financial stability. You can demonstrate this with:

• An employer's statement or letter of intent.
• A perspective statement (through an employment agency).
• Your average income over the past few months.

Tip: Do you have savings? Use this to support your application and increase your chances.

Can you get a mortgage without having a job?

In most cases, no, because lenders want certainty about your income. However, there are exceptions:

• You receive a structural benefit, such as a WIA or pension.
• You have enough savings to finance much of the home.
• Your partner has a stable income and you apply for a mortgage together.

Note: Banks always assess whether you can bear the mortgage burden in the long run.

What if your income was lower in the last year?

Lenders often take the lower income as a starting point, especially if the decline seems structural. However, this need not be a problem. They also look at:

• Average income over several years.
• Additional factors, such as income security and savings.

Tip: Collect clear documents such as your pay stubs and annual statements and explain your situation well. This will make your application stronger.