How much income will the bank accept?

Australian lenders are notoriously conservative when approving home loans for people working P/T.

This is particularly true if your part time job is an additional job to your normal full time work.

Most banks will only accept 50% of the income you receive from a part time job and only if you have been working there for at least a year.

There may be some lenders that will accept 100% of your income from your part time job when assessing your ability to repay a home loan.

To find a lender suitable for your situation please enquire online and one of our mortgage brokers will contact you to discuss a part time income home loan.

By choosing a lender that can accept your income, you’ll be able to borrow more and buy a property that suits your budget, not the one your bank tells you that you can afford by only considering 50% of your income!


What do I need to provide?

Most lenders wrequire you to provide your two most recent payslips and 2 years group certificates if you’ve been working for at least 3 months.

However, every lender has different requirements.

To discuss your situation with an expert mortgage broker, please enquire online or call us on 1300 889 743.


Why are lenders so conservative?

The majority of bank employees are standard full time employees that have been working in their job for many years.

As a result, they often don’t understand your lifestyle choices and they are not a very good judge of the stability of your job.

The lending guidelines of most major banks are skewed towards full time employees and are often quite unfair to anyone that is “outside of the box”.

If you are working as a part timer and are concerned about your ability to qualify for a loan with the major banks, please call us on 1300 889 743 or enquire online.

Our expert mortgage brokers can help you apply with the right lender, to maximise approval!


What if I increase my hours?

As a part time worker, you may be able to ask your employer for additional hours or convert to full time employment to help you cope with the additional commitments of buying a home.

Unfortunately, even then many lenders will require at least a 6-month track record of this new income before approving your application!

One of our lenders can accept your new income as long as you can provide one payslip showing your higher salary and an employment letter confirming your new hours.

If you have recently experienced a pay rise, please call us on 1300 889 743 or enquire online to increase your chances of getting approval for a mortgage.


Can I get approved with a major bank?

Yes, we can often help you to get approval with a major bank or, if you prefer, with a building society or credit union depending on their guidelines.

The majority of lenders cannot include all of the income from part time employees so the choice of lenders may be limited to one or two depending on how much you would like to borrow.


Apply for a home loan today!

Our mortgage brokers have extensive knowledge of the guidelines used by Australian lenders when it comes to home loans for part time workers.

Please enquire online or call us on 1300 889 743 to discuss your situation with a mortgage broker and get your mortgage approved!

  • Margaret

    I was employed as a part timer in a local IT company. My working hours have been increased to full time from last month but it’s mentioned above that the banks will require at least 6 months record since the working hours have been increased. Will I qualify for a home loan from a major lender or should I have to wait just to qualify?

  • Hi Margaret,

    Yes, it is true that the lenders may require increased working hours for at least six months in order to consider this extra income for the loan application. However, some of the major and non-major lenders may still accept your new income if you are able to provide a recent payslip that shows your new salary and an employment letter confirming the increased hours.

  • Mandalis

    Can you help me find a lender than can accept 80% of my part-time income?

  • Hello Mandalis,

    Most banks will only accept 50% of the income you receive from a part time job and only if you have been working there for at least a year. However, there are some lenders that may be able to accept 100% of your income from your part time job when assessing your ability to repay a home loan. Please call 1300 889 743 and speak with one of our mortgage brokers to find out if we’re able to help.

  • brayden

    I’ve just recently converted to a full time worker so will the banks now accept my F/T income?

  • Hey brayden,

    Unfortunately, even if you’ve converted to F/T, many lenders will require at least a 6-month track record of this new income before approving your application. However, one of our lenders can accept your new income as long as you can provide one payslip showing your higher salary and an employment letter confirming your new hours. Please call 1300 889 743 if you want to discuss this with an expert mortgage broker.

  • Oskar

    I work part time, with a minimum of 24 hrs a week. I’ve been there 18 months and am looking for a mortgage around 40k. Would I be eligible for this?

  • Hi Oskar,
    Assuming you don’t have any other debts, year earn a standard hourly wage, you are single and have no children then you should be able to afford that. In terms of employment stability you should be fine with 18 months.

  • Jarvis

    Although I work part time, I do get paid for doing overtime and it now forms a big portion of my income. Will the overtime income be counted too?

  • Lenders often don’t consider overtime income when they assess a home loan. However, in some cases they’ll require you to provide them with evidence of your long hours for a year or even for two years. If they see that your overtime income is regular and substantial then they may consider 50% of that overtime income but there are lenders that can consider even up to 100% depending on your profession. Please check out the overtime income home loan page for details:
    https://www.homeloanexperts.com.au/unusual-employment-loans/overtime-income-home-loan/