How lenders assess casual income
- Time in the job or industry: six to twelve months is common; some lenders accept three if you've worked casually in the same field before.
- Averaging: most lenders use your year-to-date income or an average over 6 to 12 months, so a few big weeks don't distort it.
- Overtime and penalty rates: some lenders count them in full, others only partly, especially if they're irregular.
- Gaps: time off between jobs isn't fatal if it's explained.
Contractors: PAYG versus ABN
| Type | Typically assessed on | History needed |
|---|---|---|
| Contractor paid through payroll (PAYG) | Contract rate, often annualised | Some lenders from day one in the same profession |
| Contractor on an ABN | As self-employed: tax returns, BAS or alt doc | Usually 6 to 12 months ABN |
ABN contractors should also read self-employed home loans.
Seasonal and irregular income
Farm work, tourism, FIFO rosters and agency shifts can mean big swings through the year. Lenders want enough history to see a full cycle, often two years, though specialist lenders may accept less with good evidence. Our guide on how lenders assess irregular income explains the methods.
Casual work and bad credit
Insecure hours can lead to missed bills. If you've picked up a default or late payments, a specialist lender can look at both issues together. See bad credit home loans.
A worked example
A nurse has worked casual agency shifts for eight months after moving interstate, following five years as a permanent nurse. Her income varies week to week but is steady over months. A lender that accepts casual income after six months in the same industry averages her year-to-date earnings and approves her first home loan.
FIFO and shift workers
Fly-in fly-out and shift workers often earn significant allowances and penalty rates. Some lenders count them in full, particularly for mining and healthcare workers; others reduce them. If your base rate alone doesn't get you there, a lender that counts allowances can make a big difference.
Probation and new jobs
Starting a new job doesn't automatically stop you borrowing. Many lenders accept applicants on probation if they've moved within the same industry, especially with a similar or higher salary. A letter from your employer confirming your role and pay helps.
What you’ll need
- Photo ID
- Two recent payslips with year-to-date income
- Last payment summary or tax return
- Employment contract or letter
- Bank statements
- Details of debts
Who it usually suits
- Casual or contract worker
- Time in the role or industry (often 6 to 12 months)
- Steady average income
- A deposit or equity
- Australian citizen or permanent resident
