This is a common question we get asked, but it all depends on what type of employment you are in. Generally speaking, the stronger and more stable your employment history is, the better, but these are the basic requirements.

Self-Employed – You will need to provide 2 years business financials and tax returns to be assessed for a home loan. Some lenders will lend using 12 months ABN registration and BAS, but there are additional conditions such as  lower Loan to Value ratio, and additional costs like higher interest rates and risk fees.

Casual – a casual employee needs to be with the same employer for a minimum of 6 months. Each lender has their own policy for determining how much income is able to be used to calculate how much you are able to borrow. You will need to provide your two most recent pay slips that show year to date income and possibly your income summary from the previous financial year. The rules around lending to a casual employee are tighter in recent times as there has less certainty around casual income during COVID.

Contractors – Lenders treat contract workers in a similar way to casual employees. This is because it can be unstable and deemed to be a higher risk for the bank, so they want to see a  strong employment history.

Part Time or Full Time – The general requirement is 3 months in a position and preferably  any probation period has been completed. You will need to provide a minimum of 2 consecutive pay slips that show year to date income and an income summary for the previous financial year if 3 months isn’t visible on the pay slip.

If you have just started a new part-time or full-time job this can be considered if you have a pay slip and an employment contract. But you must still be working in the same field/same role and have not had a gap between jobs.