Can You Get A Home Loan With Casual Employment?

A lender will usually want to understand the bigger employment picture, including:

• How long you have been with your current employer
• What you were doing before your current job
• Whether you have stayed in the same occupation or industry
• How much your income changes from pay period to pay period
• Whether your work is ongoing, seasonal or irregular
• Whether overtime, penalties, allowances or a second job form part of your income
• Your deposit, debts, expenses and overall borrowing position

This is why two people who both describe themselves as casual workers can receive very different outcomes.

Someone who has worked similar shifts for the same employer for two years presents a very different income history from someone who started casual work recently and receives unpredictable hours.

What Counts As Casual Employment?

Casual employment refers to the nature of your employment arrangement. It does not automatically tell a lender whether your income is stable.

A casual employee can work regular shifts for a long period. Another casual employee may work only when shifts are available.

For a home-loan application, the lender is usually trying to answer a different question:

What level of income can reasonably be relied on when assessing this loan?

That is why your actual earnings history can matter as much as your employment classification.

What Is The Difference Between Casual And Part-Time Employment For A Home Loan?

A permanent part-time employee will usually have agreed regular hours and an ongoing employment arrangement.

A casual employee may work similar hours but without the same guaranteed pattern.

This can change the way income is verified.

For a part-time employee, the lender may be able to rely heavily on contracted hours and base salary. For a casual employee, recent payslips, year-to-date earnings and employment history can become more important.

Will My Casual Job Be Accepted?

Our Casual Job Calculator provides an initial indication based on information such as your time in your current job, previous employment stability, LVR, working pattern and deposit position.

Casual Job Calculator

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How long have you been in your job?

Less than 3 months3 to 6 monthsMore than 6 monthsMore than 12 months

Was your previous job in the same line of work?

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What % of the property value are you borrowing (LVR)?

Less than 80%80% to 85%86% to 90%91% to 95%100% (Guarantor Loan)

How regular are your hours?

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Do you have 5% in genuine savings?

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Results

Time in current job

Declined

Prior employment stability

Accepted

Loan to value ratio (LVR)

Accepted

Genuine savings

Accepted

Overall result

Declined

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Tips & Suggestions

If you have been in your job for less than 3 months then you must have regular hours to get approval.

Unfortunately your situation appears to be outside standard lender guidelines. Please call us on 1300 889 743 or enquire online to discuss your options.

6 months is the ideal acceptable time frame by most lenders, however, 3 months is acceptable on a case by case basis.

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Results assume all eligibility and financial criteria are met. This is not a quote or pre-qualification. Seek financial advice before buying. By providing your email, you consent to receiving home loan emails, updates, and offers from Home Loan Experts. You can unsubscribe anytime. See Privacy Policy.

How Do Lenders Assess Casual Income For A Home Loan?

Lenders usually want to establish what you normally earn rather than simply taking the highest figure shown on your latest payslip.

Depending on the lender and your situation, the assessment may use recent payslips, year-to-date income, bank salary credits, previous financial-year earnings or a combination of these.

The lender may also look for unusual periods.

If your earnings suddenly increased because you worked extra shifts for a few weeks, for example, the lender may want to know whether that higher income is likely to continue.

If your income regularly falls during certain parts of the year, that can also affect the calculation.

The aim is generally to arrive at a sustainable income figure for servicing the proposed loan.

We work with lenders who understand that many Australians are now casually employed. Consequently we’re often able to get your loan approved when other brokers and lenders have failed. Talk to the experts. Call us on 1300 889 743 or enquire online today.

Do Lenders Average Casual Income?

Some do, depending on the lender’s policy and the income evidence available.

Others may place more weight on year-to-date earnings or compare current income against historical income.

The practical point is that the same casual income can be assessed differently depending on where the application is lodged.

Why Doesn’t The Bank Just Use My Hourly Rate?

Because your hourly rate only tells the lender what you earn when you work. It does not necessarily tell them how many hours you will work.

For example:

$40 an hour × 38 hours × 52 weeks

would assume you work 38 hours every week of the year.

That might be accurate for one casual employee and completely unrealistic for another.

Lenders generally want evidence of what you actually earn over time rather than relying solely on an hourly rate.

Does Casual Loading Count Towards Home Loan Income?

Casual loading can form part of the income considered by a lender because it is generally included in the casual employee’s earnings.

The more useful question, however, is not whether the loading appears on your payslip.

It is how much of your overall verified casual income the lender is prepared to use for servicing.

That depends on the lender’s income-assessment method and your earnings history.

Can Overtime Be Included With Casual Income?

Overtime may be included, but lenders can approach it differently.

They may consider how regularly you work overtime, how long you have been receiving it and whether the recent amount is representative of your usual earnings.

A short period of unusually high overtime may be treated more cautiously than overtime that has appeared consistently over a longer period.

With some casual-income assessment methods, the lender may already be looking at your total earnings over time rather than assessing every component of the payslip separately.

How Long Do I Need To Be Casually Employed To Get A Home Loan?

You do not automatically need 12 months in the same casual job.

The shorter your current employment history is, however, the more important the rest of your work history can become.

Someone who has worked casually for three months after moving directly from a similar role in the same industry may be viewed differently from someone entering a new occupation with little income history.

Less Than Three Months

The number of suitable lenders may be more limited because there is not much evidence of your current earnings yet.

Your previous employment and industry experience may become especially relevant.

Around Three To Six Months

Some lenders may consider this length of employment where the income appears consistent and there is a reasonable employment history behind it.

Six To 12 Months

A longer period gives the lender more information to assess your normal income, particularly if your hours vary.

More Than 12 Months

An established history can make income consistency easier to demonstrate, especially where individual payslips fluctuate.

These timeframes should not be treated as fixed rules. Lending criteria vary.

What If My Casual Hours Vary?

Changing hours are common in casual employment and do not, on their own, rule out a home loan.

What matters is the pattern behind those hours.

Consider two casual workers:

Worker A usually works between 28 and 38 hours each week. Individual payslips move up and down, but total monthly earnings remain fairly consistent.

Worker B works 35 hours in some weeks, very few hours in others and occasionally goes several weeks without shifts.

Both have variable hours. Their income stability is not the same.

This is why a longer earnings history can sometimes tell the lender more than a single payslip.

What If I Have Gaps In My Casual Employment?

A gap in employment will usually be considered in context.

A lender may want to understand how long the break lasted, why it happened, whether similar breaks occur regularly and whether you returned to the same occupation afterwards.

A short gap between employers is different from a work pattern involving repeated long periods without income.

Predictable gaps also matter.

Someone working in an occupation with regular seasonal breaks may need their income assessed over a period long enough to capture those lower-income months.

Can I Get A Mortgage After Changing Casual Jobs?

Changing employers does not always mean your employment history starts again from zero.

Continuity in your occupation can matter.

For example, a registered nurse moving from one hospital to another may still have a clear employment history even though the employer has changed.

A borrower moving into a completely new occupation may have less history for the lender to rely on.

The lender can consider the previous role, the new role, income, industry experience and any gap between jobs when making its assessment.

Can A Casual Employee Get A Home Loan With A 5% Deposit?

A casual employee may be able to buy with a 5% deposit if the overall application meets the relevant lending requirements.

Eligible homebuyers may also have access to the Australian Government 5% Deposit Scheme through participating lenders.

A government guarantee does not replace the lender’s assessment of your income and borrowing capacity.

For a casual borrower, the lender still needs to be satisfied with the employment history, verified income and ability to service the loan.

In other words, a smaller deposit can help with the cash needed to buy, but it does not change the need to prove sufficient income.

What If I’m A First-Home Buyer Working Casually?

Casual employment does not prevent you from buying your first home.

The same lending fundamentals still apply: income, expenses, debts, deposit and borrowing capacity.

You may also be eligible for first-home-buyer schemes or concessions depending on your circumstances.

If casual employment is the main reason you have delayed speaking with a broker, it may be worth checking your position before assuming permanent employment is required.

What About Labour-Hire Or Seasonal Casual Workers?

These employment patterns can require a broader view of income.

Labour-Hire Employees

The lender may look at how long you have worked through the labour-hire agency, the type of assignments you undertake, your occupation and gaps between placements.

Seasonal Workers

Income needs to be assessed in a way that accounts for periods when fewer hours are available.

A high-income season should not automatically be treated as though the same earnings continue for the full year.

Highly Irregular Casual Work

Where weekly hours change significantly, a longer earnings history can help the lender separate the normal income pattern from unusually strong or weak pay periods.

Should I Wait Until I'm Permanent Before Applying?

Not automatically.

Permanent employment may simplify the assessment in some cases, but it may make little difference in others.

Before deciding to delay buying for six or 12 months, find out what your current position looks like.

You may discover that lenders can already assess your income.

Alternatively, the assessment may show that another few months of employment history would materially improve your options.

That gives you a reason to wait rather than waiting simply because you have been told casual workers cannot get home loans.

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Talk to a mortgage broker!

Unlike other brokers, we’re specialists in lending to casual employees and so can quickly work out which lender is the most suitable for your situation.

Complete our free assessment form or call us on 1300 889 743 to speak to a casual employment loan specialist.