There are a number of steps you can take to increase your likelihood of getting approved for a mortgage.
Save a larger deposit. The larger your deposit, the less you have to borrow and the less of a risk you represent to the bank when lending to you. Lenders will view your application more favourably and may offer you a lower interest rate and a more affordable monthly payment.
Proof of long-term security. Providing lenders with evidence of future employment agreements can help to prove you are able to afford a mortgage.
Fewer breaks between jobs. One of the advantages of contract employment is the ability to take time off between jobs and manage your own schedule. If you’re planning to buy a home, it might help to minimise the length and number of gaps between jobs in the lead-up to buying a home. Lenders may be wary of borrowers with lengthy stints of time off between jobs.
Improve your credit score. Strengthening your credit score is always a good idea. Pay off any outstanding debts, whether it’s a personal loan or credit card debt. As a contractor, showing that you can manage your finances responsibly is more important.