FIFO or DIDO – banks treat you differently

Do you ever feel like you’re seen as a high-flyer in high vis, boarding the plane in your steel caps, to earn zillions of dollars (so they say!) and having an easy life?  You’re simply a tall poppy, that’s all.  Your reality might be closer to missing your family, wanting another few sleep-ins, and a lower tax bill, more of your partner’s home cooking, and to be able to join your best friends at next week’s destination wedding. Instead you’ll be on site, working.

I tried that mining life in my 20s, and yes, it was a lucrative time, but also the hardest time; and I didn’t last the distance.  The point is I hear you: every second away from home is priceless, so you need to maximise your financial return. That means getting value out of every dollar you earn for your FIFO or DIDO role, while you’re young enough.

If you're buying a house from a donga, it's good to have help.

Fortunately, there are banks that understand your roster life — but there are many that don’t.  You need someone to take ALL of your income into account: your base pay, your allowances, your overtime, also the salary packing like car payments, mortgage/rent, and living expenses.  If they leave things off the list, it can actually reduce your borrowing capacity, and the effects can destroy your home buying dream.  The right lender for you is the one that sees your “up and down” pay as consistent, and not all of them do. They see one big payslip, then a lower one, and get the wobbles.

Casual and contract roles don’t have to stop you getting a home loan.  Some lenders specialise in short-term FIFO income, as they understand that this is how it is in the real world.

If I can give you a few tips, they are:

1.      Save money in a separate account, for a rainy day. Banks love to see this, as it shows that you are covering yourself for when your pay might go down, in between swings, for example, or during cyclone season.

2.      Consolidate your personal debts like car and boat loans, the caravan, and the credit card.  We can help you do this. Banks like to see a clean slate where possible.

3.      It’s best to have 6 months of steady pay before applying. That does vary, but don’t change Labour Hire companies the day you call us. A stable look is a good look.

We help you prepare to get a home loan, whether it’s your own home or an investment property.  We explain how you can pull together the required deposit, and, if you need to contribute cash, how much.  If you need other services like Buyers Agents (who do the running around for you, to find the best property while you work away) we have some great ones in our circle of friends.  You won’t get financial advice from us, that’s up to your accountant and/or financial planner, but we can help you structure your lending to fit your life, no one else’s life.  We will show you which lenders appreciate the true value of your extra hours, allowances, and bonuses.  Lenders who understand that contract and casual roles can be consistent income.  Lenders who will roll out the red carpet for you. You deserve it. God knows you work hard enough…

If you are an operator, supervisor, superintendent, or any other mining professional, talk to a broker who understands the resources industry. To make an appointment to discuss a home loan for FIFO workers, click here.