Home Loan Part-Time? Here's How to Secure One Fast

Are you working part-time and wondering if owning a home is a dream you can achieve? You're not alone. Many Australians, like you, work part-time for various reasons—be it balancing family commitments, pursuing further education, or simply preferring a more flexible lifestyle. The good news is that securing a home loan while working part-time is entirely possible, though it does come with its unique challenges.

Understanding Home Loans for Part-Time Workers

When you're employed part-time, lenders may perceive your income as less stable compared to full-time positions. This perception can impact your borrowing capacity. However, this doesn't mean you're out of options. Lenders are increasingly recognising the diversity of employment types and are willing to assess applications on a case-by-case basis.

It's crucial to understand that what lenders primarily look for is your ability to repay the loan. This means your overall financial situation, including income, debts, and credit history, will be closely examined. Being part-time doesn't disqualify you from getting a home loan; it simply means you'll need to demonstrate your financial stability and reliability in different ways.

Interest Rates, Requirements, and Options

Current interest rates in 2026 vary depending on the lender and your financial profile. Generally, you can expect rates to range between 6.49% and 12%. As a part-time worker, your rate may be slightly higher due to perceived risk, but there are ways to mitigate this.

Here are some common requirements and options:

• Stable Income: Lenders prefer to see consistent income over a significant period. If you've been in your part-time role for at least 12 months, this can work in your favour.
• Deposit Size: A larger deposit reduces the lender's risk. Aim for at least 20% of the property's value to avoid Lenders Mortgage Insurance (LMI).
• Good Credit Score: A higher credit score can offset the fact that you're part-time, showing you're reliable with credit.
• Additional Income Sources: If you have multiple streams of income (e.g., rental income, investments), highlight them in your application.

At Esteb and Co, with access to over 83 lenders, we can help you find competitive rates and terms that suit your financial situation.

Steps to Secure a Home Loan as a Part-Time Worker

1. Assess Your Financial Health: Calculate your income, expenses, and existing debts to understand your financial standing.
2. Improve Your Credit Score: Pay down debts, limit new credit applications, and ensure bills are paid on time.
3. Save for a Larger Deposit: The larger the deposit, the better your chances of approval and securing a favourable rate.
4. Gather Documentation: Prepare proof of income, employment history, and any additional income sources.
5. Consult a Mortgage Broker: Engage with experts like Esteb and Co to explore your options across 83+ lenders.
6. Submit Your Application: With the help of your broker, submit your application ensuring all details are accurate and complete.
7. Negotiate Terms: Don’t hesitate to negotiate rates and terms. Your broker can assist in this process.

Tips and Considerations

Here are some expert tips to enhance your home loan application:

• Consider a Co-Signer: If possible, having a co-signer with a stable income can strengthen your application.
• Demonstrate Job Stability: Long-term employment, even part-time, can be seen favourably by lenders.
• Document All Income Sources: Include casual work, side gigs, or other non-traditional income streams.
• Be Realistic About Property Value: Choose properties within a price range that aligns with your financial capacity.
• Stay Informed: Keep abreast of changing market rates and lending policies.

Frequently Asked Questions

1. Can I get a home loan with only part-time income?
   Yes, many lenders offer loans to part-time workers, provided you meet other criteria such as having a stable income and good credit score.
2. What is the minimum deposit required for part-time workers?
   While it varies, a 20% deposit is ideal to avoid LMI and improve your approval chances.
3. How can I improve my chances of getting approved?
   Improve your credit score, save a larger deposit, and consider additional income streams to strengthen your application.
4. Are interest rates higher for part-time workers?
   They can be, depending on the perceived risk. However, other factors like credit score and deposit size can influence the rate.
5. Can Esteb and Co help me find a suitable lender?
   Absolutely. With access to over 83 lenders, we can tailor solutions to your specific needs and financial situation.