Borrowing without steady work

Permanent job & temporary contract

Whether you have a permanent contract or a temporary work / unemployment benefit makes a big difference when applying for a loan. Housing costs also play an important role. A random example at Rabo Bank shows the difference in outcome. A single man with permanent employment, salary € 1900 gross and € 350 housing costs can borrow € 12,500. The same man but now with a temporary contract cannot borrow anything at all. Nevertheless, there are certainly opportunities to borrow for temporary workers who have been working for a while.



With a letter of intent after all

It is also possible to borrow money with temporary work. If you have already received two temporary contracts within three years, you can get a third temporary contract. After that third period, a legal right to a permanent job arises. If your employer is satisfied with you about your temporary work and you would like to take out a loan? Then ask your employer for a letter of intent. This is a statement from the employer stating that they intend to offer you a contract for an indefinite period. Please note: the letter of intent is not legally binding. You cannot grant any rights that you actually get a permanent job. For the bank, the letter of intent is an important document and can be the deciding factor in offering you a loan or mortgage .

Borrowing with a temporary contract

There are a number of important changes for adult employees on a temporary contract. For example, the employer may no longer include a trial period in a contract of 6 months or less. A maximum of 3 temporary contracts may also be given in a period of two years.
After this you are entitled to a permanent contract. If your employer wants to avoid this, he must not offer you work at the company for at least 6 months. Zero hours contracts are also limited. If your contract of at least 6 months is not renewed, the employer must tell you this no later than one month in advance. If your employer fails to do so, you are entitled to compensation of a maximum of one monthly salary.




There is something in return for the companies. The maximum unemployment benefit period will be reduced from 38 months to 24 months in the coming years. In addition, benefit recipients must accept all activities after six months. The benefits agency can then cut people's benefits if they do not accept certain jobs.