When you are buying a home and needing a mortgage any extra income is going to be a help.
You often need to do a bit more, and make a bit more effort to get into your first home. I know this to be true as it was for me and as a mortgage adviser I see this all of the time.
Having personal experience as a Rideshare driver has helped me to understand how to use the extra income with the home loan applications too, and even a little extra income can make a huge difference to what someone can borrow.
Why Start Doing Rideshare
When you want to get approved for a home loan the bank will want to look at your application, with specific emphasis on three areas:
Your Deposit – most first home buyers would benefit from a larger deposit, and that normally means earning more so that you can save more.
Generally the deposit will be a combination of savings in KiwiSaver, any First Home Grant and of course any additional savings that you put together. If you are doing Rideshare then it would be wise to start saving a percentage of your income from when you start.
Your Income – you may have your main income and that’s great, but if you have extra income from Rideshare then that can help too.
The lenders will want to see that you consistently earn that extra incomes the longer you have been operating a Rideshare business the better it looks on your application. With the Rideshare businesses you can download a statement that shows your earnings, and over time you will have your tax returns to prove income too.
Any Other Debts – many first home buyers have some short-term debt and that impacts how the banks assess your home loan application. The more that you have to pay on any debts, the less of your income is available to be used to pay the mortgage; therefore you will not be approved for as much.
An extra income from doing Rideshare can help you pay those debts off faster and that means you are better prepared for a home loan.
What Rideshare Company To Use?
I personally use both Ola and Uber and both are good.
Often I will work on a Saturday and at times a Sunday too, and generally I can earn $30 – $35 an hour which is not too bad. The way that things work is you can earn more at “busy times” or at times when there are fewer drivers available.
If I do 15-20 hours in a weekend then I would expect to earn $500 – $600 a week.
Even after expenses it is easy enough to earn $400 in a weekend and that’s an extra $20,000 a year which really helps with your finances.
Reach out if you want to know more, or if you want to see how doing Rideshare could help you but your first home.
I’m a Rideshare Expert
