Can I get a home loan as a 6-month contractor?

Yes — many lenders accept PAYG contractors with as little as 12 months in the same industry, even on rolling 6-month contracts. The key is consistent industry tenure, not contract length.

How is ABN contractor income assessed?

ABN contractors are assessed as self-employed — typically 2 years of tax returns and BAS, or low doc with accountant's declaration. We can pre-model your capacity under both.

Will banks count my full day rate?

Some lenders count 100% of base. Some apply 80% haircut to contractor income. We know which is which — the difference can be $100K+ in borrowing capacity.

What if I have gaps between contracts?

Up to 4-6 weeks between contracts is usually fine. Longer gaps (3+ months) need explanation. We package this in the application narrative so it doesn't trigger an automatic decline.

Should I switch to PAYG before applying?

Sometimes yes — but it depends on your role, rate and timing. If you're 6 months from buying, switching to PAYG can simplify the application. We model both scenarios.

Contractor Home Refinancing

Who this guide is for

PAYG contractors on rolling 6-12 month contracts
ABN contractors invoicing through their own company or sole trader
IT, engineering, healthcare, finance, defence, government contractors
Contractors with gaps between assignments or recent role changes

The real challenge

A PAYG contractor on a $200K daily rate often gets assessed by major banks at 80% of base — losing $40K of borrowing income on paper. ABN contractors face the full self-employed rule set: 2 years of returns, accountant declaration, BAS history.

The reality is most contractors have stable, predictable incomes — they just don't fit the 'permanent employee' box that lender automation expects. Without the right broker, you get an artificially low borrowing capacity.

How Mortgagefy helps

Mortgagefy works with the lenders that understand contractor income — including those that count overtime, allowances and bonus rates at full value. We know which IT contractors get full-base assessment, which healthcare contractors qualify on shift differentials, and which lender wants what evidence.

We model your real borrowing capacity across 4-6 lender scenarios so you can see the difference. Then we lodge with the lender that gives you the strongest position.

How it works — 4 simple steps

Contract review

We review your current contract, day rate, history and any gaps to map borrowing capacity.

Lender shortlist

Different lenders treat contractor income differently — we shortlist the 2-3 most generous for your profile.

Document pack

Contract, payslips, tax returns, accountant letter (if ABN) — we tell you exactly what's needed.

Settlement

Application, valuation, settlement coordinated. Most contractor loans settle in 4-6 weeks.

Frequently asked questions

We use offer letters and vesting schedules to value RSUs conservatively. We present current vesting value + projected future vesting as a 3-5 year income average. This gives lenders confidence in your income stability while accounting for market volatility.

Both. We work with W2 employees, 1099 contractors, and consultants. For contractors, we use 2 years of tax returns plus business financials. We have lenders who specialise in contractor income—they understand the variability.

Unvested options have zero value for refinancing. We count only vested equity. If you have a 4-year vest, we use 25% of the grant value (what's vested) plus a conservative projection of future vesting.

If you've been in your new role 6+ months, most lenders will refinance. We'll use your offer letter plus 6 months of pay stubs. If less than 6 months, it's harder but possible with specialist lenders.

Yes, if you have 2+ years of bonus history. We average the past 2 years and present it conservatively. Some bonuses get counted at 50% to be conservative with variable compensation.

ESPP is counted as deferred compensation. If your company matches or you have a discount, we value it as part of total compensation package.

Get a free Sydney contractor home loan assessment

We model your borrowing capacity across multiple lender scenarios — so you see exactly which lender gives you the strongest position.

Start Your Free Assessment Call 0432 634 648

Get your personalised answer in 2 minutes

Free, no obligation. We'll match you with the right lender for your situation.

Model your scenarios: Use our free home loan calculators to estimate borrowing capacity, repayments, and savings.

Contractor Home Loans — PAYG and ABN Contractors in Sydney