Working as a FIFO mobile plant operator comes with its own set of financial advantages and challenges. Your regular roster cycles and strong earning potential put you in a unique position when it comes to buying a home – especially that dream holiday property you've been thinking about.
Let's talk about how your FIFO lifestyle can actually work in your favour when you're ready to expand your property portfolio with a holiday home.
Understanding Your Borrowing Capacity as a FIFO Worker
Your income structure as a mobile plant operator might look different from traditional employment, but it doesn't mean your borrowing capacity is limited. When applying for a home loan for a holiday property, lenders will assess your financial situation based on:
• Your consistent FIFO income over the past two years
• Bank statements showing regular deposits
• Employment contracts demonstrating ongoing work
• Your existing home equity if you already own property
Many lenders across Australia recognise FIFO income as stable employment, which opens up more Home Loan options for your holiday home purchase.
Holiday Home Loan Considerations
Buying a home as an investment or holiday property comes with different requirements compared to your primary residence. Here's what you need to know:
Loan to Value Ratio (LVR) Requirements
Most lenders will require a lower LVR for investment properties, typically around 80%. This means you'll need at least a 20% deposit to avoid lenders mortgage insurance (LMI). However, some lenders may accept higher LVRs with LMI.
Interest Rate Variations
Holiday homes and investment properties often attract different interest rate pricing. You'll typically find that investment property rates sit slightly higher than owner-occupier rates, whether you choose a variable interest rate or fixed interest rate home loan.
Ready to get started?
Book a chat with a Finance & Mortgage Broker at FIFO Home Loans today.
Accessing Home Loan Options Across Australia
The property market offers opportunities in various locations, from coastal retreats to mountain getaways. As a FIFO worker, you have the advantage of understanding different regions across Australia, which can help inform your holiday home choice.
When you access Home Loan options from banks and lenders across Australia, you'll discover that different lenders have varying:
• Interest rate discounts for investment properties
• Application process requirements
• Assessment criteria for FIFO income
• Additional features like offset accounts
Planning Your Holiday Home Purchase
Get Pre-approved First
Home Loan pre-approval gives you a clear understanding of your loan amount and puts you in a stronger position when making offers. The pre-approval process involves submitting your income documentation and having lenders assess your borrowing capacity.
Consider All Costs
Beyond the property price, factor in:
• Stamp duty (varies by state)
• Legal fees and inspections
• Ongoing maintenance and rates
• Property management if you plan to rent it out
Choose Your Rate Structure
Decide between variable home loan rates, which can fluctuate with market conditions, or a fixed interest rate that provides certainty for your budgeting. Some borrowers opt for a split loan combining both options.
Calculating Home Loan Repayments
Calculating home loan repayments for your holiday property helps with budgeting and ensures the investment aligns with your financial goals. Consider how the repayments fit within your FIFO income cycle and whether you'll have rental income to offset costs.
Home loan interest rates directly impact your repayments, so comparing Home Loan Rates across different lenders can potentially save you thousands over the loan term.
Making Your Application Count
The streamlined application process starts with gathering your documentation. As a FIFO worker, ensure you have:
• Recent pay slips covering your full roster cycle
• Bank statements showing consistent income deposits
• Tax returns demonstrating your earning history
• Details of existing assets and liabilities
Your Home Loan application will be assessed based on your overall financial situation, including your existing property equity and debt commitments.
Purchasing a holiday home as a FIFO mobile plant operator is absolutely achievable with the right approach and professional guidance. Your regular income and strong earning potential position you well for property investment, and there are lenders who understand and value FIFO employment.
Call one of our team or book an appointment at a time that works for you to discuss your holiday home loan options.
