I own my own workshop. Will banks lend to me?

Yes — through specialist lenders. 2 years BAS + tax returns. Equipment depreciation often added back.

I'm PAYG with overtime — will banks count it?

Depends on lender. Some 80%; others 100% with 12+ months overtime history.

My workshop has a business loan on equipment. Does that hurt home loan?

Yes — business loans reduce serviceability. Some lenders treat business loans differently.

How much can I borrow as a workshop owner on $90K net?

On $90K net + 20% deposit: typically $580K–$720K.

I work for a dealership on PAYG. What's my borrowing capacity?

On $95K total + 20% deposit: typically $600K–$750K.

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Mechanic / Auto Trade

Mechanic Home Loan Australia: Real Lending for Auto Trade

Mortgagefy Broker Team · Published 2026-04-29 · Last reviewed 2026-04-29

Whether you're a workshop owner with ABN income, a contracted mechanic, or PAYG employed — Mortgagefy knows lenders who treat mechanic income properly.

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Who this guide is for

Australian mechanics — workshop owners, contracted ABN mechanics, and PAYG-employed mechanics — wanting home loans that maximise actual income.

Workshop owner mechanics with ABN and 2+ years trading
Contracted ABN mechanics working for dealerships or businesses
PAYG-employed mechanics with overtime income
South Asian and migrant mechanics needing cultural support

The real challenge

Mechanic income splits across two main types — both with lender challenges. Workshop owners face self-employed lending complexities. PAYG mechanics often have significant overtime that banks discount aggressively.

Specialist lenders handle both well — counting overtime at 100% for PAYG, and accepting BAS-based income for ABN workshop owners.

How Mortgagefy helps

Mortgagefy works with lenders that maximise mechanic borrowing capacity. For workshop owners, we use BAS and tax returns with appropriate add-backs. For PAYG mechanics, we choose lenders that count overtime properly.

Free advice. Honest assessment.

How it works — 4 simple steps

Free mechanic chat

20-minute call about your structure (workshop owner, ABN contractor, PAYG), income and target home.

Compare lender options

We identify which lenders maximise borrowing for your specific structure.

Application package

We compile your tax returns, BAS (if ABN), payslips and supporting documents.

Settle your home

Approval through to settlement with ongoing support.

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 mechanic home loan assessment

Free 20-minute call about your real options — workshop owner or PAYG mechanic.

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.