Homeownership is a major goal for many Australians, including those who work part-time. With roughly 30% of Australian workers employed part-time, it’s important to understand that banks do lend to part-time employees. A common misconception is that you must have a full-time, 9-to-5 job or years of continuous employment to qualify for a mortgage. This comprehensive guide will walk you through everything you need to know about home loans and part-time employment in Australia. We will share with you how working with an award-winning mortgage broker in Brisbane can help you borrow the maximum loan amount to buy your dream home!
So, let’s dive in and help you unlock the door to your new home – even with a part-time job!
Can You Get a Home Loan on Part-Time Employment?
Yes – it’s absolutely possible to get a home loan when you’re employed part-time, whether your income comes from a permanent part-time position, casual shifts, or contract work. Lenders will consider part-time and casual income as legitimate when assessing your borrowing capacity, but they do so with some extra caution. In fact, most banks and lenders will accept 100% of the income from your part-time job when calculating what you can afford. The key is proving that your income is steady and sufficient to repay the mortgage. In this section, we’ll explain how lenders view part-time employment and what factors they look at.
Lenders' Perspective on Part-Time Income
From a lender’s point of view, income stability and consistency are just as important as the amount of income. A permanent part-time worker with a regular schedule and reliable hours might be viewed similarly to a full-time worker – the income is ongoing, only the number of hours differ. On the other hand, if you’re in a casual or variable-hour role, the bank may perceive higher risk due to potential fluctuations in your earnings. Lenders typically ask: How secure is this person’s job and income? To answer that, they consider a few key factors:
- Employment Tenure: How long have you been in your current job? Many lenders like to see at least a few months (often 6 months) in the role or a longer history in the same industry to ensure your income is stable. However, even if you’ve only just started a new part-time job, there are lenders who will still consider your application – some will even approve after just one day on the job if other criteria are met!
- Type of Employment: Lenders differentiate between permanent part-time, casual, and contract employment. We’ll break down each type shortly.
- Income Level and Affordability: Your actual income amount matters too – a higher part-time income can offset some concerns about stability. Lenders will calculate your borrowing capacity based on your income minus expenses. A loan can be approved as long as your part-time salary and any other income sources comfortably cover the projected mortgage payments (even if rates rise). For example, if you earn $60,000 from part-time work, the bank will typically count that full $60,000 in their assessment, not some lesser percentage.
- Consistency of Hours and Earnings: If your part-time job provides consistent hours, say 20 hours every week with little variation, lenders see that as a stable pattern. If your hours fluctuate, they may look at a longer period to gauge your true average income. Often, banks will annualise your year-to-date earnings or review your payslips and tax documents to determine a conservative average. For example, if over 12 months your income ranged a bit, they might use the lowest earning year or an average to be safe. The goal for the lender is to ensure you can afford the loan even in a “worst-case” income scenario.
- Overall Financial Picture: Finally, your credit history, existing debts, and deposit savings play a huge role alongside your employment. A part-time worker with an excellent credit score, minimal debts, and a healthy deposit might be a better loan candidate than a full-time worker with lots of debt and a small deposit. Lenders will weigh all these factors together. If you can show you’re responsible with money and have buffered yourself, it mitigates the perceived risk of your part-time status.
In short, lenders will loan to part-time employees, but you need to show that your income is reliable and sufficient. The good news is that many Australians have successfully obtained mortgages with part-time or casual jobs by meeting the banks’ criteria. In the next section, we’ll look at those criteria in detail – specifically, what different lenders require for permanent, casual, and contract workers. Understanding these policies will help you target the right lenders and strengthen your application.
Permanent Part-Time vs Casual vs Contract: What's the Difference?
It’s important to clarify how employment type is defined because it affects what the lender expects from you:
Permanent Part-Time
You have an ongoing employment contract with no fixed end date but work fewer hours than full-time (e.g. 2, 3 or 4 days a week). You usually receive pro-rata benefits like sick leave and holiday pay. From a lender’s perspective, a permanent part-time job offers the security of an indefinite position. The only difference from full-time is you earn a bit less due to fewer hours. If you’re past any probation period and your hours are relatively stable week to week, most banks view permanent part-time work quite favourably – often almost the same as a full-time role. In fact, some lenders will approve a home loan with a permanent job even if you just started this week, as long as you can provide an employment contract or a first payslip and perhaps evidence of prior stable employment. We’ll discuss probation soon, but being permanent part-time can essentially tick the “job stability” box for many lenders.
Casual Employment
You work on a casual basis, meaning your hours can vary, and you typically don’t have guaranteed minimum hours or leave entitlements. Casual roles are common in industries like retail and hospitality. Over 2.7 million Australians, or 23% of workers, are casually employed. Lenders historically see casual workers as higher risk simply because your employer isn’t obligated to give you a certain number of hours. In theory, your income could drop if shifts dry up. Some banks used to decline loans just because an applicant was casual. However, this view is outdated as data shows that around 81% of casual employees stay with their employers for at least 12 months, compared to 93% of permanent employees. So casual work isn’t as unstable as many think. These days, many lenders are willing to lend to casual employees, provided you have a solid history of regular work. If you have regular full-time hours but are technically on a casual contract, some banks might accept a shorter history, like 3 months. Overall, being casual means you may need to jump through a few more hoops, such as providing extra documents or demonstrating a longer track record, to reassure the lender.
Contract Employment
This refers to fixed-term contracts, e.g. a 6-month contract role or a 12-month maternity leave cover and sometimes to independent contractors. Here, the employment has an end date, which can make lenders nervous: “What if the contract isn’t renewed?”. However, many industries (IT, engineering, government, etc.) use rolling contracts as the norm. Lenders will look at the specifics, such as how long your contract is and if you have been contracting in this field for a while. Some lenders treat fixed-term contract workers similarly to permanent employees, especially if the contract is long or consistently renewed. For example, a lender might be fine if you have at least 3–6 months remaining on your current contract or if you can show a history of previous contracts being extended. If you’re an independent contractor with an ABN, lenders might categorise you as self-employed, usually needing 1-2 years of evidence of income unless you have a guaranteed income via a contract. But if you just switched to contracting after being a permanent employee in the same industry, some banks will still consider your income continuous – particularly in high-demand fields. The main point with contracts is to prove ongoing employability: letters from your employer about renewal prospects or evidence of consecutive contracts can strengthen your case.
In summary, permanent part-time is generally the easiest type of part-time work for loan approval, casual employment may require more history or the right lender, and contract work sits somewhere in between, depending on length and renewals. Now, let’s get specific about what different lenders require for each of these situations.
Case Study 1: Part-Time Worker with High Income
Sarah is a marketing manager who recently negotiated a 4-day work week (she works about 32 hours per week) at a high salary of $80,000 pro rata. She’s a permanent part-time employee, switching from full-time at the same company to part-time for better work-life balance. She’s been in this role for 2 years total. Her income is stable, just a bit lower than when she was full-time. She has a 15% deposit saved.
Although Sarah’s income is high for a part-time load, she was worried that banks might not take her seriously since she’s not “full-time”. Also, because her hours were reduced in the last year, her latest PAYG summary shows $80,000 income vs the previous year’s $100,000. She’s concerned the lender might question the drop.
With the help of her broker, Sarah actually found the process quite smooth. Because she’s a permanent employee with a steady history, most lenders treated her application similarly to a full-time worker’s. She applied with a major bank (Commonwealth Bank) that only required her two latest payslips and an HR letter confirming her 4-day/week part-time status and salary. The bank counted 100% of her $80k income in their assessment – no shading since it’s ongoing employment. They did notice the income drop in her documents, but the letter from her employer explained it was due to moving to a 0.8 full-time equivalent position, not due to performance or instability.
Because her deposit was over 10%, there was no issue with mortgage insurance hurdles. Her loan was approved for the amount she needed, and even with her slightly lower income, she could borrow enough because the bank took her full salary into account. The interest rate she received was on par with what full-time borrowers get. Sarah’s case shows that mainstream lenders will welcome your business if you’re a permanent part-time with a solid salary and track record.
Lender Policies On Part-Time Employment Types
Every bank or lender has its own credit policy, but there are common patterns in what they require from borrowers in various employment circumstances. Below, we break down typical lender requirements for each type of part-time employment. Keep in mind these are general guidelines – some lenders may be stricter and others more flexible. The key takeaway is that if one lender’s policy doesn’t fit you, another lender might be a better match.
Permanent Full-Time & Part-Time
If you are a permanent part-time employee, you’re in the most favourable category from a lender’s perspective. Many banks will readily approve loans for permanent employees even if you haven’t been on the job for very long. In fact, with the right lender, you only need to be employed for one day and can even be on probation to be considered for a home loan. That means if you just started a new permanent job this week, there are lenders who won’t make you wait – they might ask for your employment contract and first payslip, but they won’t automatically decline you just for being new. This tends to apply if you have no probation or a short probation and your role is secure.
However, there are a few caveats: if you have a limited deposit and require Lenders Mortgage Insurance, or if your overall situation has some risk factors, lenders (or the mortgage insurer) might want to see a bit more employment history. In practice, if you’re borrowing more than 80% of the property value (thus needing LMI), you may need 3–6 months in the role or evidence of previous experience in the same field to satisfy the lender/insurer. For example, a bank might approve you with 95% LVR as long as you’ve been in your current permanent part-time job for at least 6 months – if less, they’ll ask you to show you worked in a similar job before. This is because with a small deposit, the lender has less buffer, so they tighten other criteria slightly. If you have a 20% deposit or a guarantor, lenders are generally more relaxed about job length as long as it’s permanent.
In summary, permanent full-time or part-time workers can often get approved almost immediately in a new job, especially with a strong employment background or a sizeable deposit. Always check each lender’s policy. If you don’t meet one bank’s rule, don’t be discouraged – it’s a matter of finding a lender whose policy fits your scenario. If you are unsure, talk to an expert mortgage broker who has worked with many lenders.
Casual Employment
If you’re employed on a casual basis, lenders will typically ask for a longer history of employment before they’re comfortable approving a home loan. The standard requirement among many banks is 6 to 12 months in your current casual job. This demonstrates that your income is ongoing, not just short-term gigs. The reasoning is that after about 6+ months, you’ve shown an ability to consistently get hours and income from your employer, and you likely intend to stay.
That said, there are lenders who are more lenient with casual workers. A few will consider 3 months in the job sufficient, especially if you’re working regular full-time hours on a casual contract. For instance, if you are effectively full-time casual working, say, 38 hours every week but without permanency, some lenders will approve with as little as 3 months’ history in that role. On the other hand, if you’re a part-time casual with irregular hours, i.e. your hours vary significantly from week to week, lenders tend to want at least 6 months, and often 12 months, to gauge your average income. This tightened criteria for irregular casuals became more common after COVID-19, as banks grew cautious.
Here are some common lender practices for casual income:
- Minimum Tenure: Most lenders require 6+ months as a casual in the same job or continuous employment in the industry. A couple of flexible lenders might go as low as 3 months if everything else in your application is strong. On the stricter side, a few may ask for 12 months if your deposit is low or your income fluctuates heavily. This means mainstream banks often want that 6-month comfort, but there are non-bank or specialist lenders who will bend the rules but be prepared to pay higher interest rates.
- Income Assessment: Lenders will usually average your income over a period to account for fluctuations. A common method is looking at your year-to-date (YTD) earnings on your payslip, annualising that figure, or reviewing the last 3–6 months of payslips. For example, if your YTD income over 26 weeks is $30,000, they’ll project that as $60,000 annual income. Many banks will also look at your tax returns (ATO Notice of Assessments) for the last 1-2 years, if you’ve been casual for a while, to see the consistency. In fact, some lenders ask casual applicants to supply the last 2 years of tax notices and will use the lower of the two years’ income as the basis for serviceability. Using the lower figure is a conservative approach to ensure they’re not overestimating what you’ll earn. If your income is trending up (say Year 1 was $50,000, Year 2 was $55,000), they might still only count $50,000 for safety. If Year 2 was lower, they’d definitely use the lower. This can be frustrating, but it’s meant to account for variability in hours.
- Multiple Casual Jobs: If you juggle more than one casual job, lenders will want to see stability in each. It’s not necessarily double the scrutiny, but they typically expect that you’ve been in each job for at least 6–12 months if you need both incomes to qualify. (We’ll cover dual jobs in the FAQ section, but note that consistent tenure in each role is key – some banks even require a 12-month history for secondary jobs). One lender policy example allows you to use payslips or 6 months’ bank statements to confirm income. This indicates that if the combined history across your casual roles is 6+ months and continuous, it may be acceptable.
It’s worth noting why lenders are cautious with casual employment. As highlighted earlier, banks worry that casual workers lack the safety net of guaranteed hours or leave entitlements. There’s a perception that if a business hits a downturn, casual staff might lose hours first. One major bank’s policy statement essentially is: “If you’re casual, prove you’re not going to lose income suddenly.” This often translates to requiring a longer track record. It’s not personal – it’s just risk management. But remember, not all banks view it the same. Some understand that casual is normal in many industries and will work with you if you can demonstrate stability. Choosing the right lender can, therefore, make a big difference in how much you can borrow on a casual income.
If you are unsure about your casual income, get in touch with us for a free assessment.
Contract Employment
Contract workers such as fixed-term contract employees or contractors occupy a middle ground in lender policies. Lenders will primarily look at the terms of your contract and your history in that line of work. Here are typical considerations and requirements for contract employment:
- Length of Current Contract: Many lenders want to see that you have a reasonable period left before your contract ends. A common requirement is at least 3 to 6 months remaining on the contract at the time of application. If you just signed a 12-month contract, great – you’re only a month or two in, so you have 10-11 months left. If you’re 10 months into a 12-month contract with only 2 months left, some banks might pause unless you have a renewal in hand or a new contract lined up. For example, a letter from your employer stating an intention to extend your contract or the fact that you’ve been renewed in the past will give the lender comfort. Certain industries like government or university projects, so lenders familiar with those may be more lenient.
- History of Contracting: If you have been contracting for a while, lenders may treat you more favourably. Say you’re an IT contractor who has successfully completed two consecutive 12-month contracts, and now you’re in the third – that track record shows you can maintain ongoing work. In cases like this, some lenders even treat you akin to a permanent employee because, effectively, you have continuous employment. They might still want to confirm you’re good at securing new contracts. Sometimes, if you’ve been contracting for 2+ years, lenders might ask for your tax returns to see your average income over that period (similar to how they treat self-employed persons), but many will just use your current contract income if you can show continuity.
- Previous Industry Experience: If you recently switched to contract work from a permanent role in the same industry, many lenders view that positively. You’re not new to the field, just to the employment type. For example, suppose you worked 5 years as a permanent engineer, and now you’re 2 months into a 6-month contract as an engineer for a new company. There are lenders who will accept this scenario without issue, especially if you have a letter confirming your contract terms and maybe a recruitment agency notes that such contracts are typically extended. They basically annualise your contract pay just like a salary. For example, if your contract pays $10,000 a month, they’ll count that as $120,000 in annual income. The assumption is your skills make you employable, so the contract end date is less of a worry. This is particularly true for high-demand fields – a lender is more likely to bend the rules for, say, a medical professional on a contract or an IT specialist than for a less in-demand field simply because the odds of continued employment are higher.
- Self-Employed Contractors: If you’re an independent contractor (ABN holder, invoicing for your services), many lenders classify you under self-employed lending policy, which usually means you need two years of accounts or tax returns. However, if you have a fixed contract with a company (even via ABN), some lenders might make an exception and treat you as per fixed-term contract rules above, especially if you can show regular contract income and perhaps a forthcoming renewal. There are also specialist lenders who cater to short-term self-employed or contractors with limited financials. For simplicity, if you’re a contractor paid on PAYG by the company, you’ll be treated as an employee on contract. If you invoice the company (no PAYG withholding), you might need to provide more documentation like BAS statements or rely on alt-doc options.
Read more: Self-employed home loans.
Probation Periods (Why They Don't Matter As Much As You Think)
A big worry for a lot of first-home buyers is: “I’m still on probation at my new job – will the bank reject my loan?” The word “probation” (the initial period in a new job, often 3 or 6 months, during which either party can terminate more easily) can sound alarms in some people’s minds. The reality, however, is that being on probation is often not a barrier to getting a home loan – provided your situation is otherwise solid. Many lenders are willing to approve loans for borrowers on probation, especially if you have a strong employment background or the probation is just a formality.
Here’s why probation might not matter as much:
- Lender Policies Accommodate Probation: Quite a few banks explicitly state they will consider applicants who are still in a probationary period. For instance, two of Australia’s major banks, NAB and CBA, are known to handle probationary applicants well, even offering up to 90%+ LVR loans – if you can show previous experience in the same profession. This means if you started a new job as, say, a nurse and you’re on 6-month probation, NAB/CBA might approve you as long as you’ve been a nurse elsewhere before (indicating you’re likely to pass probation). Some lenders don’t even require prior industry experience; they simply don’t mind probation if your overall profile is good. They understand that probation is a routine part of starting any job and that most people pass it.
- Case-by-Case Flexibility: Lenders often look at the circumstances. Are you in a role that is in high demand or very secure? Are you only on probation because it’s company policy, but you’ve been doing similar work for years? If yes, lenders make exceptions. In other words, even on probation, you’re still eligible for a home loan as long as you can show you started the job and have at least that first payslip. This underscores that probation alone isn’t a deal-breaker.
- Employment Stability vs. Probation Status: Lenders care more about the stability of your employment field and income than the technicality of probation. If you switched employers but remain in the same industry or role, and especially if the new job is equal or better pay, most lenders won’t see an issue. A stable career path can outweigh the fact that you’re “new” at the specific company. Additionally, if you have a history of continuous employment with no large job gaps, being on probation at a new job after leaving your old one is not seen as risky. Contrast this with someone who was unemployed for a long time and just started a new job yesterday – in that case, a lender might be more cautious and want to see a few months of income first. But for typical cases of job change, probation is often considered a normal part of life.
- Mortgage Insurance Considerations: One scenario where probation can matter is if your loan requires Lenders Mortgage Insurance. Some mortgage insurers prefer that probation is completed, or they impose extra conditions if not. For example, if you’re on probation and only have a 5% deposit, an insurer might say come back after probation or require more info. But again, this is not universal. Many people have been approved with 5-10% deposits while on probation by using lenders with more flexible insurers or leveraging a guarantor to avoid LMI.
Bottom line: Don’t automatically delay your home purchase just because you’re on probation. There are plenty of options. The key is to present a strong case, and this is where working with a mortgage broker is extremely important.
Read more: Can I Get A Home Loan If I Just Started A New Job?
Challenges for Part-Time Workers Applying for Home Loans
Applying for a home loan when you’re not a full-time employee can introduce a few extra challenges. Understanding these hurdles is the first step to overcoming them. Let’s explore some common challenges part-time, casual, and contract workers face and why lenders can be a bit more conservative with these applicants:
Perceived Income Instability: The biggest concern lenders have with part-time or non-full-time employment is the stability of income. With a full-time permanent job, there’s an expectation of 38 hours every week and a steady salary. With part-time or casual work, will the income be consistent?
Variability in Work Hours and Pay: Many part-time workers (especially casuals) experience fluctuating hours. One week, you may earn a lot; the next week, less. This means the income the bank uses to assess your loan might be lower than what you consider your true earning capacity.
Lenders’ Conservative Policies: There is a notable conservatism in lending policies toward non-full-time employment. As we covered, some banks simply have hard rules (6+ months casual, etc.) that can’t be bent. It’s not personal – it’s just their policy. Unfortunately, this can feel discouraging. You might earn plenty to afford a loan, but if you don’t meet a bank’s checkbox, you could get declined even if you could service the loan.
Bias and Misunderstanding: There’s also an element of misunderstanding or bias. Banks and the people working in credit departments often operate on traditional assumptions. There’s anecdotal commentary that banks are filled with full-time workers, so they don’t always understand casual employment. That might be why some policies seem out of touch with modern work practices.
Lower Borrowing Capacity: Even if you clear the hurdle of acceptance, you might face a challenge with borrowing capacity being assessed on a lower income figure. As discussed, lenders often “shade” or discount variable income. Some will take only 80% of a casual or heavily variable income to account for potential drops. If you have a part-time job plus some overtime or commission, they might ignore the extra and just take your base pay.
Documentation Burden: A smaller (but noteworthy) challenge is the extra documentation you might need to provide. While a full-time worker might just provide 2 payslips and be done, a casual/part-time worker might be asked for more, e.g. last year’s PAYG Summary, a letter from the employer about your employment status, or more bank statements to verify income. Self-employed contractors have an even larger doc burden. This can be a bit of a hassle and can prolong the approval process.
Emotional Stress and Uncertainty: Lastly, from a personal standpoint, going for a mortgage when you’re not a cookie-cutter applicant can be stressful. You might worry, “Will they judge me for only working 3 days a week?” or “Will my loan get rejected because I’m casual?”. This uncertainty can weigh on you, especially when you’re simultaneously trying to find a property. It’s a challenge to stay confident.
Despite these challenges, remember: thousands of part-time and casual workers successfully get home loans every year in Australia. The hurdles can be overcome with careful planning, choosing the right lender, and presenting a strong application.
In the next section, we’ll focus on actionable strategies to improve your chances of approval. By addressing the challenges head-on – increasing your stability, saving more, etc. – you can make yourself an attractive borrower in the bank’s eyes even without a full-time job.
Case Study 2: Casual Worker with Stable Employment History
David works in the retail sector and has been a casual employee at a supermarket for 18 months. His hours are fairly regular – around 25-30 hours every week – even though technically rostered as casual. His manager even calls him a ‘permanent casual’ because he has a set schedule. David earns about $45,000 a year from this job. Before this, he was working another casual retail job for 2 years while studying, which he left for the better-paying supermarket role. He’s now looking to buy his first apartment. He only has about a 5% deposit, so he’ll be needing LMI.
As a casual worker with a small deposit, David hits a double-whammy of risk factors in the bank’s eyes: employment type and high LVR. He worries that lenders will either decline him or that LMI insurers will be strict about his 18-month tenure (perhaps wanting 24 months). He’s also concerned that his hours sometimes fluctuate a bit in off-peak times – on some fortnights, he earns slightly less, though, over a year, it averages out.
David wisely engaged a mortgage broker who has dealt with many casual workers. The broker recommended two approaches:
- Plan A was to go with a lender like NAB, which is major and often fine with 6+ months casual, at 95% LVR with LMI.
- Plan B was to consider a specialist lender like Liberty who could potentially lend 95-97% even if an insurer wouldn’t.
They decided to try NAB first. David provided extensive income evidence: 6 months of payslips, his last 2 years of PAYG summaries, and a letter from his employer stating he averages ~28 hours/week and has been there 1.5 years. NAB approved his loan (with LMI) at 95% LVR, impressed by the consistency in his documentation. They averaged his year-to-date income, which was in line with the prior years, seeing that even during his “worst” month, he was making enough to cover the loan’s servicing. Also, David’s prior job in retail for 2 years gave comfort that retail is his steady field. Interestingly, the LMI insurer did not object, likely because of the strong history; 18 months in one job and continuous employment before that met their criteria for stability. The loan was approved, though it took a little longer to process a few extra verification steps.
Want to get your home loan approved? Get in touch with us today for a FREE assessment.
How To Improve Your Chances of Approval
If you’re a part-time, casual, or contract worker applying for a home loan, there are several proactive steps you can take to strengthen your application. These strategies will help address the challenges we discussed and make you a more appealing candidate to lenders. Here are some of the most effective ways to improve your chances of approval:
- Increase Your Deposit (Lower your LVR): One of the simplest ways to ease a lender’s concerns is to save a larger deposit. A bigger deposit means a lower loan-to-value ratio (LVR), which reduces the lender’s risk. For you, that could mean aiming for a 20% deposit instead of 10% or even just pushing from 5% to 8-10%. When you have an LVR of 80% or below, you avoid Lenders Mortgage Insurance and many lenders become much more flexible on other criteria like employment length. Even if you can’t reach 20%, every extra bit helps. A rule of thumb is that you’d want at least about 8% deposit + costs when applying as a casual worker. This isn’t a formal rule, but it often holds true that a little more buffer impresses lenders. A larger deposit doesn’t just make approval easier; it could also secure you a better interest rate in many cases.
- Maintain Consistent Income and Work History: Consistency is your friend. Try to maintain steady employment without gaps and consistent earnings leading up to your loan application. Lenders love to see that you’ve been earning roughly the same amount or gradually increasing over time. If you’re casual or part-time, avoid switching jobs close to when you plan to apply unless necessary because a fresh reset on your employment length can complicate things. If you do need to change jobs, staying in the same industry or role is helpful. Also, if your hours vary, try to keep them as steady as possible in the months before applying – picking up one extra shift every week consistently might look better than huge swings. If you have two jobs, keep at both for over a year, if possible, so the lender can count both incomes fully. This reliability will counteract any hesitancy about your part-time status.
- Consider a Guarantor Loan: Using a guarantor can significantly improve your loan prospects. A guarantor (often a parent or close family member) offers part of their home’s equity as additional security for your loan. This allows you to borrow a large amount without needing a large deposit or LMI. For a part-time worker, a guarantor arrangement can be golden because the lender’s risk is substantially reduced – they have another property to fall back on. As a result, lenders may be more forgiving about your employment situation when a guarantor is in place. Of course, you still need to show you can afford repayments, but you might bypass some of the stricter criteria. Many first-home buyers in Australia use guarantors to overcome deposit and policy hurdles – it’s a tried-and-true method.
- Reduce Other Debts and Improve Your Credit Score: Before applying, try to pay down existing debts such as credit cards, car loans, and personal loans and tidy up your credit file. Lenders assess your Debt-to-Income ratio (DTI) and overall liabilities. If a significant chunk of your part-time income is going towards other debt repayments, that will limit what you can borrow for a home and may raise questions about your financial management. Reducing or clearing those debts serves two purposes: it frees up more of your income for the mortgage, and it shows financial responsibility. Alongside debt reduction, ensure your credit score/report is healthy. As a part-time worker, you want to come across as low-risk in every aspect under your control. Check your credit report for any mistakes or old defaults and get them fixed if possible. Avoid any late payments – demonstrate a good repayment history on everything.
- Save and Show Genuine Savings: In addition to having a bigger deposit, showing a pattern of genuine savings over time can help. Genuine savings generally means money you’ve saved and held over at least 3 months as opposed to a one-off gift or one-time windfall. If you can show that you’ve been regularly putting aside part of your income into savings, it demonstrates discipline and the ability to make mortgage repayments. Some lenders have genuine savings requirements, especially if your deposit is small. They might say that 5% of the purchase needs to be made with genuine savings. Even if it’s not required, it looks good. For part-time workers, proving you can live within your means and save despite a modest income is a strong signal. So start early: set up an automatic transfer each payday to a high-interest savings account. Not only will you accumulate a larger deposit, but those bank statements will tell a story of your financial habits.
- Provide Additional Documentation or Explanations: When you apply, be ready to bolster your application with extra documents or letters that can address potential concerns. For example, if you are casual but working full-time hours, get a letter from your employer stating how long you’ve been employed and that your hours have been regular. If you’re on contract, get a letter confirming the contract end date and any likelihood of extension. If you changed from one job to another, write a brief explanation or have your broker include a note about your experience in the field and why the transition is a positive step. Essentially, don’t make the lender guess – proactively explain your situation. If you have unusual circumstances like a gap in employment due to, say, taking a short sabbatical or maternity leave, provide context. Lenders appreciate clarity.
- Apply with Lenders Who Embrace Part-Time Workers: Perhaps the most game-changing tip is to choose your lender (or broker) strategically. Not all lenders are created equal when it comes to part-time or casual employment. Some major banks have strict policies, while others are far more flexible. And some smaller or non-bank lenders actively cater to “non-standard” borrowers. Consult a broker who knows lender policies inside out to help you find the lenders who are known to accept part-time income readily. For example, a few major lenders will accept a loan application even if you’ve only been in a permanent job for 1 day, and several will accept casual income with just 3 months’ history. On the flip side, some lenders might want a year of employment no matter what. The difference could be the difference between an approval and a decline.
By following these steps, you’ll greatly improve your odds of a smooth approval. In essence, you want to present yourself as a low-risk, well-prepared borrower: someone who may work part-time but is financially stable, responsible, and supported by a solid plan. Many part-time workers get their loans approved on the first try by doing exactly this. Now, let’s talk about which lenders might be a good fit for you – knowing who’s flexible can save you a lot of time and set you up for success.
Best Lenders For Part-Time Workers in Australia
Some lenders are simply more flexible and understanding when it comes to part-time, casual, or contract employment. In this section, we’ll compare major banks and non-bank lenders and highlight a few that are known to be more accommodating to part-time workers. Remember, “best” can depend on your specific situation, but these insights should help narrow your search. Always double-check current policies, as lenders can update their criteria, but as of now, here’s how the landscape generally looks:
- CBA (Commonwealth Bank): CBA is known to be fairly friendly towards new employment. They have been cited to accept casual income with as little as 3 months’ history, and they often approve loans for borrowers on probation, especially if you’re not a first-time job holder. CBA’s size and diverse customer base means they’ve seen a lot of scenarios. If you have a strong overall profile, CBA is a top pick for part-time or casual employees. They also count 100% of your income in most cases unless it’s like irregular overtime. As of now, expect they want 6 months for casual, but will consider less with mitigating factors. CBA is also one of the lenders that will consider day-one employment if you’re permanent with a contract in hand.
- NAB (National Australia Bank): NAB is well-known for its flexible approach to probation and new jobs. NAB has even approved a joint application where one borrower was casual. That suggests NAB looks mainly at the tenure with the employer and is willing to proceed by just checking recent payslips. NAB’s policy generally asks for 6 months in the current casual role, but they do allow averaging of income over multiple casual jobs if you have, say, 6 months total across them with no big gap. NAB also tends to count full income as long as you can document it. So, if you’ve been casual for a while or just started a permanent part-time role in your field, NAB should be on your shortlist. They are also competitive on rates and occasionally have deals for first-home buyers.
- Westpac / St.George Group: Westpac’s policies historically have been a bit stricter on employment length if you’re a brand-new casual. They usually like to see 6 months for casual. In some cases, they want 12 months in some cases if you have a high LVR and no prior history. Westpac requires you to have at least passed probation for permanent roles unless you have a strong compensating factor. That said, Westpac will consider less with strong overall profiles and often asks for an employer letter if you’re new. Westpac Group sometimes allows the annualisation of income from a shorter period. For instance, if you’ve been casual for 4 months, they might annualise your 4-month income if it’s clearly stable and you have a good credit score. But in general, Westpac is somewhat middle-of-the-pack in flexibility. Not the most lenient, not the strictest. If you have 6+ months of continuous employment (even across jobs), they’re usually fine. If you’re under that, you might lean toward CBA/NAB first.
- ANZ: ANZ historically was known for being a bit conservative with employment. They typically want to see probation completed for a permanent job, though they have made exceptions for strong cases. For casual and part-time, ANZ often likes 6 months in the current role or 12 months continuous in the industry. If your LVR is lower than 80%, ANZ may bend a bit – like 3 months job tenure might be okay if you were in the same field prior. But if you’re going for a high LVR loan and you’re, say, only 2 months into a casual job, ANZ would likely be tough. One thing to note is that ANZ sometimes shades secondary income (like a second part-time job) or overtime more heavily than others. They might only count 80% of it or require a longer history, like 2 years, to include it. So, if your income structure is complex, ANZ might not give you full credit for it. On the plus side, if you meet their criteria, ANZ often has competitive rates and cash-back offers. They’re just not usually the go-to for unconventional employment unless the borrower is very well-qualified otherwise.
- Other Banks (Macquarie, HSBC, ING, etc.): Many other banks in Australia each have their stance.
- Macquarie Bank has become a popular lender for brokers due to its good service and rates. They generally want 6 months in current job or a longer prior history, but they can be flexible if, say, you’re 3 months in and came from a stable job before that. Macquarie will also annualise YTD income, which helps casuals with increasing income.
- ING tends to be somewhat strict on employment – they often prefer 12 months in your current job or at least in the industry, especially if you’re borrowing high LVR. They also tend to be strict about secondary income. So, ING might not be the first choice for part-time workers unless you have a very stable multi-year history.
- HSBC usually likes 6 months employment and will consider probation only if you’re in a high position or strong profile.
- Bank of Queensland (BoQ) and others like Suncorp follow fairly standard 6-month casual, out-of-probation for permanent rules, but they might consider exceptions if LVR is low or if you are working with a really good mortgage broker. Smaller regional banks and credit unions each have varied policies – some mirror big banks, while a few have niche allowances.
- Non-Bank Lenders and Specialist Lenders: These are institutions that are not traditional banks but offer home loans. Many of these lenders specialise in borrowers who don’t fit main banks’ strict criteria, which can include part-time/casual employees, self-employed with short history, credit issues, etc. They often charge a slightly higher interest rate or fees in exchange for that flexibility. Let’s highlight a couple:
- Pepper Money: Pepper is well-known as a go-to lender for those with non-standard income or credit. Their philosophy is to take a “real life” approach to lending. Pepper will assess 100% of your casual or second job income, overtime, commission, etc., when calculating your borrowing power. This is a big plus if other lenders were discounting your income. The trade-off with Pepper is typically a slightly higher interest rate than the absolute lowest bank rates and maybe some fees.
- Liberty Financial: Liberty is another popular non-bank that is quite aggressive in lending to those with short employment tenure. Anecdotally, Liberty can even lend up to 95-99% LVR for casual workers with just 3 months on the job, although the structure is unique. They sometimes capitalise a portion of LMI or have slightly higher rates. Liberty often doesn’t require as long a history; they may accept 3-6 months employment or even less if other factors such as high income are strong. Expect interest rates possibly 1-2% higher than majors if you’re using these special policies.
- Other Non-Banks: There are numerous other lenders in the “specialist” or “near-prime” category:
- Bluestone is known for flexibility with income types and even short work histories. They often cater to those with some credit issues, too.
- Resimac has options and can consider shorter employment if the DTI is low and the story makes sense.
- La Trobe Financial can be very flexible, but its rates are usually higher. They also do a lot of low-doc and unique scenario loans.
- FirstMac often follows standard rules for prime loans but has some flexibility on a case-by-case basis if, say, you’ve been in a job for 4 months but previously was stable.
Interest rates and products
While it’s important to get a lender that will approve you, you also want a good deal. Sometimes, the lender that will approve you might have a rate half a percent or more above the lowest in the market. If you can qualify with a more traditional lender without too much delay, it could save you money. It’s a balancing act – you might decide, “I want the house now, and I’ll pay a bit extra for a year or two”, vs. “I’ll wait 6 months in my job to go with a cheaper lender.” There’s no wrong answer; it depends on your urgency and market conditions. For example, house prices could rise more in that waiting period. With interest rates, always compare the offers you qualify for. Major banks often have special rebates, which could offset some costs if you go with them. Non-banks typically don’t do cashbacks but sometimes waive certain fees.
Expert Tip: Engage a mortgage broker who knows these lenders. They often have up-to-date matrices on which lenders will accept you based on your current employment situation. They can do the legwork of matching you to the best lender and also sometimes negotiate a better rate for you with that lender. Since brokers have access to both major banks and non-bank/specialist lenders, they can present options side by side. Given that it doesn’t cost you to use a broker, there’s little downside and a lot of upside in this scenario.
Documents Required for a Home Loan As a Part-Time Worker
When applying for a home loan, part-time and casual workers will need to provide much of the same documentation as full-time workers, plus potentially a few extra pieces to verify income stability. Being prepared with all the necessary paperwork will speed up your application and give the lender confidence in your financial story. Here’s a checklist of documents you’ll likely need and some tips for each:
- Proof of Income (Payslips): Most lenders require your most recent payslips to verify your income. Typically, two payslips are needed, although some lenders may ask for three if you are paid weekly or fortnightly to cover at least one full month cycle. Each payslip should also indicate whether you’re casual/part-time and your hourly rate and hours worked or salary – this helps the lender see consistency. For casuals, if your hours vary, try to provide the most recent consecutive payslips that cover at least 3 months YTD if possible, because the more income history they have, the better the lender can annualise it.
- Employment Contract or Letter: Provide your employment contract or a letter from your employer, especially if you are new in the job or on contract. This document will show whether you’re permanent or contract, your probation period (if any), and your guaranteed hours or end date of the contract. If you’re casual, you likely won’t have a contract, but an employment letter stating your commencement date and current employment status can be useful. While not all lenders require a letter upfront, it can preemptively address questions, so consider getting one if your broker advises it.
- Tax Returns or Payment Summaries (Group Certificates): If you have been working part-time or casual for more than a year or in multiple jobs, lenders often like to see your ATO Notice of Assessment or PAYG Payment Summary for the last financial year. In fact, for casual workers, many lenders ask for the last 2 years’ tax returns or group certificates to verify the consistency of annual income. Essentially, these documents are critical for showing the bigger picture of your earnings beyond just recent payslips.
- Bank Statements (for Income and Expenses): Lenders usually ask for recent bank statements for your everyday account (where your salary is deposited) and any savings accounts. Commonly, 3 months of statements are required, though some ask for 6 months, especially if you’re self-employed or your deposit is right on the edge. If your statements show other loans or regular payments, make sure you disclosed those in your application because the lender will spot them. If you use cash a lot (tips or cash-in-hand work), note that cash deposits without documentation typically won’t be counted as income, so banking all your pay properly is important.
- Identification Documents: These are standard for all applicants. You’ll need a photo ID (driver’s license, passport) and possibly a Medicare card or birth certificate as secondary ID. If you’re not an Australian citizen, you’ll need proof of your visa/residency status as well.
- Liability Statements: If you have any existing loans (car loan, personal loan), provide the latest loan account statements (usually 3 months) for each. If you have credit cards, provide the latest monthly credit card statements for each card.
- Rental history (if applicable): If you are currently renting, some lenders like to see a rental ledger or proof of rent payments. This is more common for first-home buyers to show that, “Hey, I’ve been paying $X in rent, which is similar to a mortgage payment”. It’s not always required, but it can be helpful, especially if you have limited savings.
- Guarantor Documents (if using a guarantor): If you are going the guarantor route, your guarantor will have to provide a set of documents, too – similar to a loan application of their own. That includes their ID, proof of income, mortgage statements for the property they’ll use as security, and sometimes a guarantor certificate (a legal advice sign-off). This is something to be aware of; ensure your guarantor is prepared to supply these quickly to avoid delays.
- Additional Income Docs: If you have other income sources that you want considered (e.g., family tax benefits, child support, a second job, dividends), you’ll need documents for those too. For government payments, a Centrelink income statement; for child support, a Child Support Agency letter or court order plus bank statements showing receipt. For investment income, provide the latest statements or tax return schedule. Only include these if they are significant and ongoing. Otherwise, many lenders ignore small amounts. But if you need them to boost borrowing power, be ready with evidence.
Expert Tip: When submitting these documents, write a cover letter or have your broker write a note explaining anything unusual. Anticipating the underwriter’s questions and answering them with documentation can prevent conditions or delays.
Also, ensure all documents are legible and complete. Don’t skip pages on statements – even if a page is blank, some banks want the numbered pages all there. A small detail, but it avoids back-and-forth.
In summary, be prepared to document your income thoroughly when you’re part-time or casual.
Frequently Asked Questions
Can I get a home loan if I work two part-time jobs?
Yes, it’s possible to qualify for a home loan with two part-time jobs, but lenders will look closely at your history in each job. In fact, many Australians piece together a full-time income through multiple part-time roles. Lenders will typically consider both incomes as long as you can show a track record for each.
How do lenders calculate income for part-time workers?
Lenders use a few methods to calculate and verify your income when you’re part-time or casual, aiming to get the most conservative, stable figure. Additionally, lenders often average out any fluctuating components like overtime or allowances over time. If you think the lender’s calculated income is unfairly low, a good broker can sometimes argue for using a more representative figure, especially if you can show this year is consistently higher and likely to remain so.
What if my hours fluctuate each week?
It’s common for part-timers and casuals to have hours that aren’t identical every week. Lenders handle this by looking at longer-term averages rather than any single week. If your hours fluctuate, the lender will likely request additional documents (like several months of payslips or your group certificates for past years) to determine your average income level.
Will my loan approval be different if I apply with a partner (one part-time, one full-time)?
Applying jointly with a partner can significantly strengthen a home loan application, especially if one of you has full-time employment. In cases where one applicant is full-time, and the other is part-time or casual, lenders will consider the total household income and generally take comfort in the presence of the full-time income. If one income changes, you’re in a good position. Many first-home buyer couples have exactly this dynamic and get loans approved routinely.
Conclusion
Key Takeaways: Being a part-time, casual, or contract worker is not a dead-end on the road to homeownership. Australian lenders are increasingly understanding of non-traditional employment arrangements – after all, a large chunk of the workforce isn’t 9-to-5 permanent. We’ve learned that while part-time applicants might face a bit more scrutiny on income consistency, there are clear ways to overcome that. Remember that many banks will accept 100% of your part-time income when it’s substantiated, and some will even approve loans with only days or weeks in a new job if other factors check out. Challenges like income fluctuations and conservative lending policies can be mitigated by averaging your income over time and choosing a lender with flexible criteria. And if your bank says “no”, there are specialist lenders ready to say “yes” – often, it’s about matching yourself to the right institution.
Next Steps And Getting Your Home Loan Approved
Are you ready to get a home loan as a part-time employee? Our team at Hunter Galloway is here to help you buy a home in Australia. Unlike other mortgage brokers who are just one-person operations, we have an entire team of experts dedicated to helping make your home loan journey as simple as possible.
If you want to get started, please give us a call on 1300 088 065 or book a free assessment online to see how we can help.
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