If you're a FIFO worker considering refinancing your home loan, you're probably wondering whether your unique employment situation affects your eligibility. The good news is that many lenders now understand the FIFO industry and offer loan options specifically designed for workers like you.
Refinancing can help you access a lower interest rate, change your loan term, consolidate debts, or release equity to buy the next property. However, understanding the eligibility requirements is crucial before you start the application process.
Income Documentation Requirements
As a FIFO worker, your income documentation needs differ from traditional employees. Lenders typically require:
• Recent bank statements (usually 3-6 months)
• Employment contract showing your roster pattern
• Pay slips covering your full rotation cycle
• Tax returns from previous years
• Letter from your employer confirming ongoing employment
Your variable income pattern means lenders need to see consistent earnings over time. They'll look at your average monthly income rather than focusing on individual pay periods.
Credit History and Financial Situation
Lenders assess your overall financial situation when determining refinancing eligibility. Key factors include:
• Your credit score and credit history
• Current debt-to-income ratio
• Existing loan repayment history
• Any defaults or missed payments
• Outstanding credit card balances
If you've maintained regular loan repayments despite your FIFO roster, this demonstrates financial responsibility to potential lenders.
Property Valuation and Equity Position
Refinancing eligibility also depends on your property's current value and your loan amount. Lenders will:
- Order a property valuation
- Calculate your loan-to-value ratio (LVR)
- Determine available equity in your property
- Assess whether you meet their lending criteria
If you're releasing equity in your property for investment purposes or debt consolidation, you'll need sufficient equity to support the increased loan amount.
Employment Stability and Contract Terms
Lenders want to see employment stability, even with FIFO work. They'll examine:
• Length of time with your current employer
• Contract duration and renewal history
• Industry experience and qualifications
• Potential for ongoing employment
Permanent FIFO employees often have stronger applications than contractors, though both can qualify for refinancing with the right lender.
Interest Rate Options and Loan Features
When refinancing, you can choose between:
Variable Interest Rate
• Rate fluctuates with market conditions
• Often includes offset account facilities
• Flexibility to make extra repayments
Fixed Interest Rate
• Rate remains unchanged for the fixed rate period
• Provides repayment certainty
• Protection against rate increases
If your current fixed rate period ending, refinancing gives you the opportunity to potentially access a more favourable interest rate or switch to different loan features.
Special FIFO Lender Policies
Many banks and lenders across Australia now have specific policies for FIFO workers. These may include:
• Income assessment methods that account for roster patterns
• Reduced documentation requirements
• Streamlined application process
• Higher borrowing capacity calculations
Working with a mortgage broker who understands these special lender policies can significantly improve your refinancing prospects.
Common Refinancing Scenarios for FIFO Workers
FIFO workers often refinance to:
• Reduce loan repayments through lower rates
• Consolidate high-interest debts
• Release equity for investment properties
• Switch from interest-only to principal and interest
• Remove mortgage insurance
• Access funds for renovations
Preparing Your Application
Before starting the refinance process, conduct a home loan health check by reviewing:
• Your current interest rate compared to market rates
• Loan features you're using or missing
• Fees and charges on your existing loan
• Your changing financial circumstances
Having all documentation ready speeds up the application process and demonstrates your organisation to lenders.
Working with FIFO Specialists
FIFO workers benefit from working with mortgage brokers who understand the mining and resources industry. We can help you:
• Check eligibility for special lender policies
• Access loan options from banks and lenders across Australia
• Compare refinance interest rates
• Present your application in the most favourable way
• Guide you through the entire process
Don't let your FIFO employment status hold you back from exploring refinancing options. With the right approach and documentation, you can access loan products that suit your unique circumstances and financial goals.
Call one of our team or book an appointment at a time that works for you to discuss your refinancing options and eligibility requirements.
