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.