Contract, casual, or temp worker? You can still get approved. We know lenders who understand modern flexible employment.
Contract work is increasingly common in Australia. Lenders are adapting - but you need to know the rules.
Employed directly by company on 6-12 month contract
Lender view: Similar to permanent employment if renewals are consistent. Need 6-12 months history.
Employed by recruitment agency, placed at client sites
Lender view: Need 12+ months with same agency or continuous placements. Consistency is key.
Ongoing casual or part-time role with regular hours
Lender view: Need 6-12 months same employer with consistent hours. Average income over period used.
Self-employed contractor invoicing for services
Lender view: Treated as self-employed. Need 12-24 months ABN history + 2 years tax returns for best rates. See our self-employed guide.
Understanding the assessment process helps you prepare the right documentation.
Contract Rate (Annual)
$110,000
Contract expires in 5 months
Lender Assessment:
✓ 30+ months continuous contract work
✓ Same industry (IT/Tech)
✓ Income increasing
✓ Likely renewal (letter from employer)
Result: Income treated same as permanent employee
If your contract is ending soon, ask your employer/agency for a letter stating: "We confirm [Your Name] is a valued contractor and we anticipate ongoing engagement subject to business needs." This simple letter can make the difference between approval and rejection.
These lenders have flexible policies for contract, casual, and temporary employment.
Variable Rate from
5.89%
Comparison Rate 6.01%*
Best for: Fixed-term contractors with 6-12 months history. Strong contract worker policies.
Contract-Friendly Features:
Variable Rate from
5.94%
Comparison Rate 6.06%*
Best for: Casual workers with consistent hours over 12+ months.
Contract-Friendly Features:
Variable Rate from
5.96%
Comparison Rate 6.08%*
Best for: Contract workers in professional services (IT, finance, consulting).
Contract-Friendly Features:
Variable Rate from
6.29%
Specialist lender
Best for: Newer contractors or those with gaps between contracts. Very flexible.
Contract-Friendly Features:
If you're new to contracting, wait until you have at least 12 months continuous work before applying. This dramatically improves your chances and opens up more lender options at better rates.
Line up your next contract before the current one ends. Even a 2-4 week gap can trigger lender concerns. If gaps are unavoidable, have a strong explanation ready.
Before your contract ends, ask for a letter about renewal likelihood. Even informal email confirmation helps. "We intend to extend" is powerful language for lenders.
20% deposit significantly improves approval chances for contract workers. It shows financial discipline and reduces lender risk. Aim for 20% if possible, minimum 10%.
Lenders prefer contract workers who stay in the same field (e.g., IT contractors moving between IT roles). Industry-hopping raises concerns about stability and future employability.
Increasing contract rates over time demonstrates demand for your skills. Even small increases ($95K → $100K → $105K) show positive trajectory and improve lender confidence.
Not necessarily. If you have a strong history of contract renewals, apply now and provide evidence that renewal is likely. Many lenders will approve if: (1) you have 12+ months contract history, (2) you provide a letter from employer about renewal likelihood, or (3) you can show you've successfully renewed contracts before. Don't wait until your contract expires - that's when lenders get nervous.
If your hours are genuinely consistent, you'll be assessed similarly to part-time permanent staff. Lenders will average your income over 12 months and use that figure. The key is consistency - if you work 38 hours one week, 10 hours the next, then 35 hours, that's harder. But true "permanent casual" with set roster patterns is assessed favorably. Provide 12 months of payslips showing the pattern.
Yes, it's treated differently than direct employment. Labour hire is acceptable but you'll need: (1) 12+ months with the same agency or continuous placements, (2) evidence of ongoing work availability, (3) potentially a letter from the agency about future placements. Some lenders are more labour-hire friendly than others. CBA and NAB have good policies for established labour hire relationships.
Lenders can combine income from multiple sources if each has 6-12 months history and is likely to continue. For example, if you work 3 days/week at Company A ($45K) and 2 days/week at Company B ($30K), lenders can use the combined $75K. You'll need contracts and payslips for all positions, plus evidence each role will continue.
This is challenging. If you have less than 6 months contract history, most lenders won't approve. However, if you were employed in the same industry/role before going contract (e.g., permanent software engineer → contract software engineer), some lenders will consider your total industry experience. You'll likely need at least 3-6 months on the new contract first, plus strong justification for the switch.
This is common (contractors often earn 20-40% more). Lenders will use your current contract income if you have 6-12 months history at that level. They won't "discount" your income just because you switched to contracting. The higher income actually improves your borrowing capacity - you just need to meet the employment history requirements.
Complete our 2-minute assessment designed for contract workers. We'll assess your specific employment situation and show you which lenders will approve you.
✓ Fixed-term, casual, temporary, labour hire all welcome • ✓ No obligation • ✓ We know contract-friendly lenders