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Unusual Employment Loans

If you’ve got a job and can afford a home loan then why won’t the banks help you?

Surely there is someone who can use common sense rather than just referring to outdated guidelines?

Modern home loan lenders are beginning to understand that these days not everyone has a 9-5 job and not everyone can prove their income as easily as they’d like to.

With overtime, probation, contractors and agency workers with multiple part time jobs, it isn’t hard to see that most people don’t fit the banks normal rules.

Read on to see how you can get approval without having to argue with a bank manager!

Our popular articles on unusual employment loans

How can I get approval?

The secret to getting a lender to accept your income as true and correct is to apply with a lender that views your situation in a favourable light.

Providing the best possible combination of documents will also help to ensure that they assess you on a high income.

If your payslips show a low income because there has been no overtime in the last few weeks, then provide your group certificate and a letter from your employer instead!

We are experts in getting loans approved for people with unusual employment!

With our expertise, we can help you compare the loans offered by those lenders and get back to you with two or three loans with the most competitive interest rates and fees!

Call us on 1300 889 743 or complete our free assessment form today!

What types of employment can we help with?

  • On probation: Learn which lenders and loans are available to you when you have just started a new job.
  • Contract workers: Find out the reasons why lenders don’t like contract employees and how to find a lender that will help.
  • Self employed: Not all lenders read tax returns in the same way. Did you know some can use BAS statements or even just let you tell them what your income is?
  • Casual employees: Just because you are technically casual it doesn’t mean that your income isn’t secure! You can get a home loan if your job is secure.
  • Overtime reliance: As much as a third or even half of the income of nurses, police officers and shift workers comes from overtime or other bonuses. Loans are available from lenders that will take your full income into consideration.
  • Temp / Agency workers: These days, agencies employ a significant part of the workforce. Most banks haven’t caught up with the times and still decline anyone employed through an agency. Of course not all lenders are the same!
  • Bonus income: We know which lenders will include your bonus income as part of your annual income.
  • Discounts for professionals: If you are in the medical industry, you may be eligible for great discounts and a reduction in lenders mortgage insurance (LMI).
  • Rental income: Are you an investor who earns income through your rental property? Make it count towards a mortgage!
  • Commission income: Those working in sales roles may be paid on a commission basis. Find out which lenders will accept commission income.

We can also help in a variety of other situations and with a variety of other income types.

Please give us a call on 1300 889 743 or complete our free assessment form for more information.

Why do banks care about my employment?

People commonly ask us why their employment situation matters. If the banks have the house as security, surely this is enough to protect against any loss they incur.

What most people don’t know is that selling property is a last resort. Most banks don’t want to ruin their reputation by engaging in irresponsible lending practices and lending to those who can’t fulfil their financial obligations.

Banks care about their brand (more than they do about you!) and as such, they need certainty that the loan will be repaid, and this is evidenced through the documentation you provide them with, in terms of your income and employment.

What do I need to provide?

Australian lenders need to have documents evidencing the income that you have put on the application form.

They meet this requirement by asking for:

If you feel that you may not have sufficient documentation to apply for a loan, please call us on 1300 889 743 or complete our free assessment form today. Our mortgage brokers will assist you in getting approval.

How do banks assess your employment?

When you submit a home loan application, the bank will give your loan a credit score based on the overall risk that you pose.

Your employment and income stability forms a major part of this score. Here’s what they take into account:

  • The length of time in your current job.
  • The length of time in your industry (study is included).
  • The tendency of people in your industry to default on loans (e.g. doctors are a low risk, builders are a high risk).
  • Your employment status (full time, part time, casual, contract etc).
  • The stability of your income (casual, overtime, bonuses, commission etc).
  • Your reliance on any unstable income.

In addition to the above list, there are some other more complex factors that are specific to each lender.

We recommend that you complete our free assessment form or call us on 1300 889 743 to discuss your employment situation if you believe you may have trouble getting a loan based on your employment.

Job stability is important!

You may be earning high amounts but your employment situation may be subject to change. If this sounds like you, the banks may be hesitant to lend.

This is because banks need to be able to determine where your income is coming from. If your employment is full-time, banks know that your income source is secure so they are more likely to lend to you.

There is a big risk in lending to people who can’t support a loan especially if you are borrowing over 80% of the purchase price.

We know which banks will approve you based on your current employment situation.

Please complete our free assessment form or call us on 1300 889 743 and we can help you get approval!

How do banks calculate your income?

One of the major problems faced by people who have an unusual employment situation is how the banks work out their income when it fluctuates on a weekly basis.

As a general rule, banks will use the most conservative method of assessing your income.

For example, if you provided two recent payslips and your group certificate and they show two different incomes then they will use the lower of the two.

Unfortunately, this means they often don’t use your actual income!

In particular, people who receive overtime income, work on a casual basis or who have received a pay rise in the last year tend to be assessed at a lower income than they are actually earning.

How can we help?

Our mortgage brokers are experts in the banks’ employment policies and in the methods they use to assess your income.

We can select the lender that is best suited to you and then present the right documents to that lender to get approval.

Best of all we usually deal with the major lenders and so you don’t have to pay a higher interest rate!

Speak to us today on 1300 889 743 or complete our free assessment form and let us help you apply for a home loan!

  • Jayden

    I work in an adult film industry and have my own production house as well. I have good income of approx 90k per annum, and I currently live in apartment in Rockdale. I want to purchase a home on my own, am I eligible for a home loan from major banks?

  • Hi Jayden,

    If you have two years tax returns to verify your income, most lenders, including the major banks will consider your application as standard. However, if these are not readily available you might have to apply for a low doc loan, usually with second tier or specialist lenders.

  • Leo

    I’m an optometrist in Sydney & I want to buy a home for myself. Since I don’t have much time for research, can someone explain me how much can I borrow?

  • Hi Leo, you can borrow up to 95% of the property value plus LMI, which is generally charged for all loans above 80%. The good news is that there are lenders who can provide a no LMI home loan for up to 90% of the property value since you’re an optometrist. Please call us on 1300 889 743 to speak with one of our doctor home loan specialists to find the right lender for your situation.

  • Pritchard

    I have been a nurse for over 5 years now and I’m doing pretty well especially through all my overtime income. Can I qualify for doctor home loan discounts such as getting a no LMI home loan at 90% LVR?

  • Hey Pritchard,

    Unfortunately, you can’t qualify for doctor home loan discounts, however, you can still qualify for waived LMI if you’re borrowing no more than 85% LVR with a max loan size of $1.5 million. You must also have a clean credit history, strong income of over $150k a year and stable employment. You can learn more on the nurse home loans page:

  • eli

    Hi, I’ve been working as a freelancer for a while. How much will I be able to borrow?

  • Freelancers who can prove that they have a strong income and that their debts are all being paid on time can borrow up to 90% of the property value. If you can meet stricter qualifying criteria, you may be able to borrow even up to 95%. However, if you have a guarantor then you can go 100% while avoiding a deposit as well as LMI.

    Please check out the freelancer mortgages page to learn more:

  • Jimi

    Is it possible to get a home loan while still on a part 9 agreement? I’m almost done with this and doing stable and well now. I can provide docs to prove this.

  • Hey Jimi,

    Unfortunately, if you haven’t finished paying off your Part IX debt agreement then you can’t qualify for a home loan. Once you’re done with it, you’ll need around 16% of the purchase price as a deposit to qualify. A larger deposit may qualify you for standard bank interest rates. Please call 1300 889 743 to discuss this directly with a bad credit specialist and find out what options are available.

  • K White

    I’ve recently moved back to Adelaide after 12 years in London and now I’m hoping to buy a home. I had a financial services business in London which I sold last year, and I have a property in London which I get rental income from. I have money in the bank and can put a fairly sizeable deposit down for a property here but keep meeting stumbling blocks; the major one is that I have to be working before I can get a mortgage. Can anyone out in the HomeLoan universe help me with this?

    PS – my wife is currently seeking employment and will that help?

  • Hi
    Under Australian law (NCCP act) a lender must prove that a borrower can afford the monthly payments. So unfortunately no you’d need to get job(s) and prove an income that is sufficient to cover your living expenses and the new loan. I know this can be frustrating as no doubt with your experience that you’d be a great person to hire and could find a role easily if you needed money. But of course we cannot break legislation and the legislation is there to protect people so overall it’s a good thing.

    My suggestion is to wait until you’ve found jobs and then apply. While on probation some of our lenders will still accept your application

    P.s. Well done on building and selling a business. That’s an incredible achievement and you should be really proud.

  • jaggu

    After working for 4 years I’ve quit my mnc job in July’16 and in June’17 I’am going to join govt. job. so I have interrupted income for 1 year can I get home loan? My 2016 form 16 will show less than Rs.1 lakh income, will that debar me from getting the loan?