A contractor home loan is assessed on how long you have earned the income, how it is paid and whether it will continue. Lenders treat PAYG contractors, ABN contractors, FIFO workers and shift workers differently, so the evidence matters more than the job title. MC Mortgage Solutions compares 30+ lenders. Call 07 3893 3208.
Talk to a Broker Who Reads Contractor Income Every Week
Tell us how you are paid and we will tell you which lenders are likely to count it, before anything is lodged.
Why a Contractor Home Loan Is Assessed Differently
Most home loan rules were written around one picture. A permanent employee, one employer, a payslip that looks the same every fortnight. If that is not you, the lender is not judging your character, and nobody at the bank is doubting that you work hard. The credit policy is simply trying to answer one question. Will this income keep arriving?
Contractors, FIFO workers and shift workers all get the same suspicious look from a credit policy, and for the same reason. Their pay moves. Often. A day rate depends on the days booked. A FIFO package splits into base, allowances and overtime. A shift roster pushes penalty rates up and down with the weeks. None of that makes the income weak. It makes it hard to read from a single payslip, which is all a standard assessment wants to see.
Our job as a mortgage broker is simple to state and fiddly to do. We put the right pages in front of the right lender. Same income, different policy, different answer. That gap is the reason a broker earns their place with this type of borrower. It is also why a conversation with a contractor mortgage broker usually starts with documents, not rates.
Which Kind of Contractor Are You?
“Contractor” covers at least three different set-ups, and lenders sort them into separate boxes.
PAYG contractor. You are paid through payroll, often by a labour hire firm or on a fixed-term contract. You get payslips and a PAYG summary, which makes the paperwork the easy part. Many lenders want more than 12 months in the current role or industry, plus evidence that the work is continuous. Some will look at you from day one if your history in the same trade is clear. Policies differ. A lot.
ABN contractor or sole trader. You invoice clients under your own ABN. Lenders usually treat this as self-employed income. They ask for two years of tax returns and notices of assessment, along with your ABN registration history, because that is the only record of what the business really earned once expenses came out. If your ABN is newer than two years, the options narrow, though they do not vanish.
Company or trust structure. You contract through your own entity. The lender looks at the entity’s financials. It also looks at what you actually draw as income. That can sit well below what the business turns over.
If you are not sure which box you sit in, look at who pays you and how. That one fact decides which documents we collect. Everything else follows. Our self-employed home loan page covers the ABN side in more depth.
How Lenders Count Contractor Income
Contractor income falls into a few common patterns, and each has its own quirks.
Day-rate contractors. The lender needs to turn a day rate into a yearly figure. Some annualise it across a set number of working days a year, and the number they pick is a policy choice that varies between lenders. Your contract showing the rate, plus a run of invoices or payslips, backs the figure up. Without both, the lender is guessing.
Fixed-term contracts. If your contract has an end date, lenders look at how long is left and what came before it. When only a few months remain, your earlier work history carries more weight. Back-to-back contracts with short gaps in the same industry tell a much better story than a single contract that is about to finish, even when that single contract pays more money per day.
Renewals and extensions. A signed renewal helps. So does an email from the client confirming more work, or a clean run of earlier contracts. Vague assurances do not. Get it in writing.
Breaks between contracts. A gap of a few weeks between roles is common in contract work. Many lenders accept it when the pattern is steady. A long gap needs an explanation. Expect more paperwork, and expect the lender to ask what you did with the time.
None of this is a promise. Lender rules change. Policy is applied to your whole file, not to one line of it, and a strong contract history can still be held back by a weak savings record or a heavy credit card limit. What we can do is tell you early which lenders are likely to read your history kindly.
FIFO Home Loans and How Roster Pay Is Read
FIFO pay packets are rarely simple. A single payslip may show a base wage, a site allowance, a shift allowance, overtime and sometimes a separate payment for living away from home. Each line can be treated differently. Some lenders take it all, some take half, and some take none.
Here is how we usually break it down.
| Pay line | What we check | Why it matters |
|---|---|---|
| Base or ordinary pay | Fixed salary or hourly, across a full roster cycle | This is the starting figure most lenders accept |
| Site and shift allowances | Whether they sit in the employment contract and continue on leave | Some lenders count contractual allowances, others shade them or leave them out |
| Overtime | How long it has run and whether this year matches last year | Lenders often count a portion of it, and the portion varies |
| Living away or accommodation payments | Whether it is income or a cost reimbursement | Many lenders leave this line out |
| Reimbursements | What work cost is being repaid | Repaying an expense is not extra income |
If your payslip lumps everything under one “allowances” figure, ask payroll for the breakdown before you apply. Do it early. A lender cannot use a line it cannot identify, and payroll teams are rarely quick when you ask on the day your finance is due to be lodged.
Roster patterns also change how payslips look. On a two weeks on, one week off roster, two payslips can land on different parts of the cycle and look uneven. We compare full roster cycles, the year to date figure and the prior year before anyone decides whether your income has dropped or just moved around.
Buying a Property Near the Mine
FIFO workers sometimes want to buy where the work is. Some lenders apply tighter limits to properties in remote or single-industry towns, such as lower maximum loan-to-value ratios or a smaller pool of lenders. If you plan to buy outside Brisbane, tell us before you chase a listing. The property gets its own assessment. Separate from your income.
Shift Workers, Penalty Rates and Overtime
Nurses, paramedics, police, rail workers, hospitality staff and factory workers all get paid for awkward hours. Which parts of that pay does a lender treat as regular?
Rostered penalty rates and shift allowances written into an award or contract are usually easier to support than overtime picked up on top of a normal roster. Extra shifts with the same employer, paid at overtime rates, tend to be counted at a reduced percentage or only when there is a steady history.
Two documents do most of the heavy lifting.
- Your last two or three payslips, to show the current pattern.
- A PAYG summary or income statement from the ATO for the last year or two, to show the pattern is not a one-off.
If your hours rose recently because you changed roster or took a promotion, lenders may want new payslips that cover the higher pay before they use it. A new roster does not reset your history. It can reset the evidence.
The Documents That Help Most
A clean file moves faster. Whatever your set-up, these are the items we ask for most often.
- Your last two to three payslips, or recent invoices if you bill through an ABN.
- PAYG payment summaries or ATO income statements, plus tax returns and notices of assessment for ABN contractors.
- Your current contract, and any previous contracts that show continuity.
- An employer or client letter confirming your role, rate and expected ongoing work, where the lender accepts one.
- Roster details for FIFO and shift workers.
- Bank statements showing your wages and savings history.
Our home loan approval checklist lists the wider paperwork lenders ask for, and a pre-approval is the best time to test your income before you bid on anything.
How Much Can You Borrow on Contractor Income?
Once the lender has decided which income counts, the calculation is the same as for everyone else. It is stricter than most people expect.
APRA requires banks to test your repayments at a rate at least 3.0 percentage points above the actual loan rate. APRA confirmed in May 2026 that the buffer stays at 3 points. From February 2026 there are also limits on lending where total debt exceeds six times gross income. Contractors with lumpy income are often closer to those edges than they think. A lender that counts only part of your pay produces a lower assessed figure, and the buffer then pushes the borrowing number down again.
Here is a simple illustration with made-up round numbers and no promise attached. Say a FIFO worker earns a $110,000 base. Add $30,000 in contractual allowances written into the employment agreement and paid on every roster, including during leave. One lender counts the base only, so the assessed income is $110,000. Another counts the allowances too, so the figure is $140,000. Same worker, same job, a $30,000 difference in assessed income, and a very different borrowing power. That is why we compare lender policy before anything is lodged. A bank that said no once is not the final word. Our guide on how much you can borrow in Brisbane explains how the numbers fit together.
Mistakes We See With Contractor and FIFO Applications
Some problems turn up again and again, and almost all of them are avoidable if someone looks at the file before it is lodged.
- Applying to the wrong lender first. Every application leaves a credit enquiry, so a decline from a lender whose policy never suited you adds a mark to your file for no reason at all.
- Mixing up PAYG and ABN income. The two sit under different rules, and the paperwork is different.
- Leaving allowances unexplained. If the contract does not tie an allowance to the roster, the lender may drop it.
- Changing jobs mid-application. A new role or contract during assessment can restart the clock on your evidence.
- Bidding before testing the income. At a Brisbane auction there is no cooling-off period. Find out what the lender will really count before you raise your hand. Then bid.
How MC Mortgage Solutions Helps Contractors, FIFO and Shift Workers
We start with your income, not the property. That order saves weeks. We read your payslips or invoices, work out which parts a lender is likely to use, and shortlist the lenders whose policies fit your set-up, then we lodge one application, explain the result in plain English and handle the follow-up questions until settlement.
Each of our brokers has 25+ years of lending experience. Together we can reach 30+ lenders and more than 200 loan products. Our service costs you nothing in most cases, because lenders pay our commission after settlement. We also work with clients across the Brisbane bayside, from Manly and Wynnum to the Redlands Coast. Work away from home? We run the whole process by phone and email.
Wondering what your income can do? Call 07 3893 3208, or ask about a pre-approval. Australian Credit Licence 394061.
Find Out What Your Income Can Do
One conversation, your payslips or invoices, and a straight answer on which lenders will count your pay.
FAQs
Can a contractor get a home loan in Queensland?
Yes. Contractors borrow in Queensland every single day. Lenders look at your history in the industry, how you are paid and whether your work is likely to continue. Rules differ. The right match matters more than the job title.
How long do I need to be a contractor before I can get a home loan?
It depends. The lender and the type of contract both matter. ABN contractors are usually asked for two years of tax returns. PAYG contractors are often asked for more than 12 months in the role or industry, though some lenders will look at a much shorter history when your trade experience is long, your contracts have run back to back and your savings record shows the discipline the lender wants to see.
Can I get a home loan if my contract has an end date?
Often, yes. Lenders look at how much time remains and at your record of earlier contracts. Steady work wins. A long run of similar contracts usually helps more than a single contract that is about to finish, because it shows the lender a pattern instead of a promise.
Does FIFO income count for a home loan?
It can. Base pay is the easiest part to support. Allowances, overtime and living away payments are treated differently from one lender to the next, so we check every line of your payslip against the evidence and the policy before we choose where to apply.
Do lenders count shift work penalty rates and overtime?
Many do count penalty rates and shift allowances that sit in your contract or award. Overtime is usually counted at a reduced percentage, or only once you have a steady history behind it. Details vary.
Can I buy a property near a mine site on a FIFO income?
Sometimes. Some lenders restrict lending in remote or single-industry towns with lower maximum loan-to-value ratios. The property is assessed separately from your income. Check first.
What documents do contractors need for a home loan?
Payslips or invoices, PAYG summaries or tax returns, your contract and bank statements are the usual set. FIFO and shift workers may also need roster details. A payroll breakdown of allowances helps too, and it saves a week of back and forth once the lender starts asking questions.
Does using a mortgage broker cost extra?
Not in most cases. The lender pays our commission after your loan settles, and we explain exactly how that works, including any exceptions, before you decide anything.
Where to Go Next
- Home loan pre-approval in Brisbane
- How much can I borrow for a home loan in Brisbane?
- Home loan approval checklist
General information only. It is not credit advice and does not take your personal situation into account. Lender policies change, so ask us to check current criteria before you apply. MC Mortgage Solutions, Australian Credit Licence 394061 (ACN 128 555 902), 138 Kingsley Tce, Manly QLD 4179, 07 3893 3208 and 1300 633 667.
