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Casual Employment Home Loan

How to get a home loan as a casual worker

Many Australians work in industries such as hospitality where it’s normal to be casually employed.

Of course the credit departments of banks are full of full-time employees, so what do they know about being casual? Not much! And it shows in their lending guidelines.

Read on to find out how the banks think and how to show them that your loan application should be given the stamp of approval!

Do you qualify for a home loan?

Click here to know if you qualify for the loan.

How can you get approval?

If you’re a casual worker, it may be difficult for you to obtain a mortgage based on your current employment situation.

To the banks, a casual employee is someone with a fluctuating income. If your income fluctuates, how can the bank be sure that you’ll make your next mortgage repayment?

Lenders also tend to think that if your employer was to lay off staff, that as a casual employee, you’d be the first to go!

Of course that isn’t always the case, this is just how a credit assessor sees it. It’s our job to make them see the truth, not the guidelines, and get your loan approved.

We work with lenders who understand that many Australians are now casually employed, and consequently we’re often able to get your loan approved when other brokers and lenders have failed.

Fill in our free assessment form or call us on 1300 889 743 to speak with a specialist mortgage broker.

How much can you borrow?

You can borrow up to 90% of the property value. If you’re in a strong financial position and have been in your job for 6 to 12 months, we may be able to help you get a 95% home loan.

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.

Although a lender may be able to give you approval, you should still only apply for a loan if you truly believe that your employment is stable. Casual employment is subject to more instability so please borrow with care.

Who is this loan for?

All casual employees are accepted, including:

  • Normal casual employees with fluctuating hours.
  • Permanent casuals.
  • Casual teachers.
  • Casual nurses.
  • People with multiple casual jobs.

You must have been in your job for at least 3 months or have a track record of employment in the same line of work or in the same industry.

Are you a casual teacher?

If you’re a teacher who’s employed on a casual basis, then you may have trouble proving your income to a bank. This is because:

  • You may work only 40 weeks per year.
  • You may work for several schools, yet have all of your pay come from the Department of Education.
  • The Year To Date (YTD) figure on your payslips may not be a true indication of your income due to recent holidays.
  • During school holidays you may not have an income at all and so providing your payslips will not prove your income.

Some of our banks can assess your true income based on either your group certificate or your weekly income multiplied by 40.

Please call us on 1300 889 73 or complete our free assessment form and one of our specialist mortgage brokers will help you to get approved.

How do lenders calculate my income?

Each lender has their own method of calculating the income of loan applicants that have a casual job.

Most lenders want to see your last two years group certificates and then they use the lower of the two. Because of this method of assessment, they’re unable to lend to casual employees that haven’t been in their job for several years.

Other lenders use the Year To Date (YTD) gross income shown on your payslip to calculate your annual income. This method is used by lenders that accept casual employees who have only been in their job for a few months.

Use our Year To Date Income Calculator to work out your assessable income.

Lenders use these methods because your income may fluctuate from week to week. If they just use the income that you’ve received in your last few payslips then their assessment will be inaccurate.

Which lenders can help?

There are major lenders who can consider your home loan application while casually employed but the outcome depends on the specifics of your situation.

Non conforming and non-bank lenders may also be able to help with your finance application. Some of our lenders can accept people who’ve been casually employed for as little as 3 months!

Complete our free assessment form or call us on 1300 889 743 to speak with a specialist mortgage broker who knows which lenders can approve your home loan while you’re casually employed.

Which loan types are available?

All loan types are available for casual employment home loans:

  • Professional packages
  • Basic loans
  • Lines of credit
  • Fixed rates

What can I use the loan for?

This loan can be used for a variety of purposes:

  • Home / domestic use
  • Investment
  • Purchases
  • Refinances
  • Construction

What are the loan features?

All loan features are possible here:

  • Interest only
  • Fixed rate
  • Line of credit
  • 100% offset
  • Redraw
  • Extra repayments

Can I get any discounts?

For this type of loan, we can get you professional package and basic loan discounts.

Who should not apply?

Self employed and low doc borrowers can’t apply for a casual employment home loan.

Casual Job Calculator

Job details

How long have you been in your job?
Was your previous job in the same line of work?
How regular are your hours?
What % of the property value are you borrowing (LVR)?
Do you have 5% in genuine savings?

Contact a mortgage broker

Talk to one of our mortgage brokers about your situation: Yes No  
  • Drucker

    Hello, I have a question. I just started working as a casual worker for a couple of months. Is it possible to get a home loan?

  • Hi Drucker,

    Although it is not usually accepted by all lenders but there are some who would still consider lending to you while you are casually employed. It depends on a number of factors such as your previous employment history, credit history, the amount and type of deposit you have and few more things.

    Moreover, if you have set hours (e.g. 20 hours per week every week) and your payslips and employer confirm this then, we can possibly help you to get approved. If not then we would need a longer employment history.

    It is better to speak to a mortgage broker so that they can analyze your complete situation and see if you qualify for a home loan or not.

  • Grace Apilado

    Hi!

    I am a casual worker earning roughly 46k per year and been with the company for 2 years and half and been renting at same time for 380 a week.My husband and I are planning to get a home loan,he’s unemployed but have investments that we can use to pay deposit.His investment is roughly 85k.Are we eligible for home loan?

    Regards

    Grace

  • Hi Grace,

    Yes you are eligible. However it would depend on how much you want to borrow. As your husband isn’t currently working your borrowing power may be lower than you need. Either you can buy now for a lower price or you can wait until your husband is one day in a new job and then we can get you approved. https://www.homeloanexperts.com.au/unusual-employment-loans/new-job-home-loan/

  • Grace Apilado

    We are looking at 450k loan and were wondering if we could put a deposit of 50k maybe..would that be possible?We dont have any other loan but my husband has a good credit history and so do i.

  • Hi Grace,
    I’d say your income wouldn’t allow you to borrow that much. Is your husband planning to start working soon? This is your best option. Alternatively you could consider a family member being a serviceability guarantor however this is messy https://www.homeloanexperts.com.au/guarantor-home-loans/income-guarantee-home-loan/

    Ultimately what is most important is that you borrow an amount that you can afford comfortably so you have a good life :)

  • Ban

    Hi , my name is Ban
    I’m single mom with one little boy and I started worked a few months ago like a casual job, I have a plan to buy a new house soon and I also have $20000 saving, do you think possible to buy a new house for me? and how much could I loans?
    Thanks.

  • Hi Ban,
    You’ll likely need a minimum of 3 months in your job. Best to enquire on our website https://www.homeloanexperts.com.au/free-quote/ then one of our brokers can complete an assessment of your situation. If you’re not ready to buy now then our Prepare To Buy team can stay in touch with you and let you know what you need to do to buy in the next year or so.
    Family Tax Benefits https://www.homeloanexperts.com.au/unusual-employment-loans/family-tax-benefit-home-loan/ and Child Support https://www.homeloanexperts.com.au/unusual-employment-loans/child-support-home-loan/ can be included as income in some situations.

  • Vanda

    Hi, I’ve been a stay at home mum for 6 years and have just started casual work for 3 months. My husband is currently unemployed. We own and live in a house which has been fully paid for. We have a cash savings of about $200K. We intend to buy another property for investment. Given our circumstances, are we eligible for a bank loan?

  • Hi Vanda,
    You may be eligible if your income is high enough. We can get your loan approved with only 3 months in your role in most cases. We may need to provide additional evidence depending on the bank you choose.

    We’d also recommend that you have cash on standby or have a talk to your boss to make sure your employment and income is secure and ongoing just for your own peace of mind.

    If you’d like our help then click here https://www.homeloanexperts.com.au/free-quote/