A contract isn't a permanent job. To the right lender, it doesn't need to be permanent — just consistent.
Roughly one in five Australian employees has no paid leave — contract and casual work is mainstream now, and lenders have policies built for it. What matters isn't a permanent title; it's how long you've been working, whether your income is steady, and how likely it is to continue. Here's how that income is actually assessed — and what makes your case stronger.
From a day rate to an assessable annual income.
Lenders don't just read your last tax return — they annualise your current contract or day rate, then apply their policy to work out what income they'll actually use. Here's an illustrative worked example, and the levers that move a contract file from "maybe" to "yes".
Day rate, annualised
Illustrative only. $600/day × 5 days × 48 weeks allows for leave and possible gaps between contracts; some lenders annualise the full contract rate, others apply a larger haircut. Consistent base income is commonly assessed at 100%, while overtime, shift allowances and bonuses are often shaded to about 80%. A real assessment depends on your lender, documents and circumstances.
The levers lenders weigh
Bars are indicative of relative weight, not a score or approval likelihood. Every lender weighs these differently.
Three things a lender is really checking.
Continuity, not permanence
A permanent title isn't the test. Lenders look for an unbroken pattern of work and income — successive contracts, consistent hours, few gaps — and are comfortable when the story holds together.
Your current rate, annualised
Rather than leaning only on last year's return, many lenders annualise your year-to-date or current contract rate. That matters if your rate has risen or you had a between-contract gap that dragged down the prior year.
Likelihood it continues
The assessor wants comfort the income won't stop. A renewal history, work in a field that's in demand, or a short letter confirming likely continuation all help make that case.
Non-permanent work is now the norm, not the exception.
The idea that only a permanent PAYG salary gets a home loan is out of date — the workforce and lender policy have both moved on.
Sources: ABS Characteristics of Employment / Working Arrangements, August 2025 (casual share has fallen roughly four percentage points over nine years); Reserve Bank of Australia Cash Rate Target, as at July 2026. Advertised home loan rates are indicative only, change over time and move with the cash rate; every advertised rate carries a comparison rate that reflects fees and charges.
Four common shapes — each assessed a little differently.
Fixed-term PAYG contract (direct)
Employed directly on a set-term contract with PAYG payslips and super. Where you have a run of history and time left on the contract, several lenders assess this much like permanent PAYG income.
Casual / permanent part-time
Ongoing role with regular hours. Consistent base income is commonly used at 100%, typically after 6–12 months (some lenders earlier where hours are full-time and steady); income is usually averaged across the period.
Labour hire / agency
Placed at client sites via an agency. Lenders generally want a solid run with the same agency or continuous placements, plus signs of ongoing availability. Some lenders are noticeably more comfortable with this than others.
ABN contractor (you invoice)
Invoicing under your own ABN is treated as self-employment, not PAYG — usually needing ABN history and tax returns. It's a different pathway; see our low-doc / self-employed guide.
The "likelihood of continuation" letter
If your contract is near its end, a short note from your employer or agency — confirming you're a valued contractor and that ongoing engagement is anticipated, subject to business needs — can be the difference between a comfortable assessment and a nervous one. It costs nothing to ask, and it directly addresses the question lenders care about most: will the income keep coming?
A letter supports, but does not guarantee, any lending decision. Approval always remains subject to the lender's assessment of your full circumstances.
Contract and casual home loans, answered straight.
Can I get a home loan on a fixed-term or contract role?
Yes — non-permanent income is assessed by mainstream lenders every day. The focus is on consistency and continuity rather than a permanent title: a run of history, steady income, and evidence your work is likely to keep going. Where those line up, several lenders assess PAYG-contract income much like a permanent salary. Which lenders fit depends on your specific situation.
My contract ends in a few months — should I wait to apply?
Not necessarily. Many lenders are comfortable where you have a strong history of renewals, or a letter indicating the contract is likely to be extended. Often what matters is having a reasonable term remaining (frequently around 3–6 months) plus a track record. Applying while you're actively engaged is usually easier than waiting until the contract has lapsed.
I'm casual but work full-time hours. How is my income assessed?
Where hours are genuinely consistent, casual base income is commonly assessed at 100% and averaged over the period — often assessed similarly to part-time permanent staff. Most lenders like to see around 6–12 months of consistent payslips, though some will look at a shorter history where hours are full-time and steady. Irregular, up-and-down hours are harder to average.
How do lenders turn my day rate into an annual income?
Lenders typically annualise your current rate — for example a day rate multiplied by days worked per week and the working weeks in a year, with some allowance for leave or gaps. Year-to-date earnings or the current contract rate are often used rather than last year's tax return alone, which can understate you if your rate has risen. The exact working-week basis and any haircut vary by lender. All figures here are illustrative.
I work through a labour hire agency — does that matter?
It's assessed a little differently from direct employment. Lenders generally want to see a solid run with the same agency or continuous placements, plus evidence of ongoing work availability. Some lenders are more comfortable with established labour-hire arrangements than others, which is where comparing across a panel helps.
I just moved from a permanent role to contracting — can I still apply?
It's more challenging with very little contract history, but staying in the same field helps a lot. If you moved from, say, a permanent role into a contract role in the same industry, some lenders will weigh your total industry experience, not just weeks on the new contract. A few months of contract history plus a clear reason for the switch strengthens the picture.
Contract, casual or temp? Let's find the lenders that fit.
Tell us how you're employed, how long you've been at it and what you're aiming to buy — we'll map your income the way lenders will, and match your file to the policies that suit it. No credit check to start.
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