Can You Get a Home Loan with Irregular Income in Australia?

What Is Irregular Income?

Before we dive into how to get a home loan with irregular income, let's define what it actually means.

Irregular income refers to any type of earnings that fluctuate from week to week or month to month. Unlike a traditional full-time salary, irregular income can come from multiple sources and may vary in amount and frequency.

Common examples of irregular income include:

• Freelancers and contractors
• Gig economy workers (like Uber, Airtasker, or Deliveroo)
• Self-employed business owners
• Part-time and casual employees
• Commission-based roles (such as sales or real estate)
• Those with multiple part-time jobs
• Seasonal workers (e.g. tourism, agriculture, events)

To help you visualise the most common types of irregular income, here's a quick breakdown by category:

If your income doesn't follow a predictable pay cycle, lenders may view it as less stable, but that doesn't mean you won't qualify. Over 20% of successful home loan applications in Australia now involve some form of non-standard income, including casual, contract, or self-employed earnings, according to data from Mortgage & Finance Association of Australia (MFAA).

The key is understanding how lenders view income stability and ensuring you can provide the right documentation to support your application.

Do Australian Banks Offer Home Loans for Irregular Income?

Yes, you can get a home loan with irregular income in Australia, but it requires more careful preparation and the right lender strategy.

Traditional banks and lenders don't automatically decline borrowers with fluctuating income. However, they do apply stricter scrutiny to ensure your earnings are reliable enough to support loan repayments long-term.

Traditional Lenders (Major Banks)

Banks like NAB, Commonwealth Bank, and Westpac typically require:

• 2 years of consistent income history
• Proof of ongoing work in the same industry
• Extensive financial documentation (tax returns, bank statements)

While it's not impossible, major banks may only use a reduced portion of your income (e.g., 70-80%) if they believe your earnings are unpredictable.

Specialist & Non-Bank Lenders

These lenders are far more flexible with casual workers, freelancers, and sole traders. They offer:

• Low-doc or alt-doc loans
• Custom assessment criteria
• Acceptance of non-traditional income streams (e.g. side gigs, bonuses, Centrelink)

At Stryve Finance, we work with a panel of both bank and non-bank lenders, so we can match your situation with the right fit.

How Lenders Assess Irregular Income

Even if you don't earn a fixed salary, lenders still want to answer one critical question:

“Can this borrower comfortably afford loan repayments over time?”

That's why understanding how lenders assess irregular income is crucial when applying for a home loan.

1. Income Averaging Over Time

Most lenders won't look at just one or two pay periods, they'll calculate an average income over the past 6 to 24 months. The longer the proven track record, the better.

For example:

If your monthly income ranged from $3,000 to $7,000 over the last year, a lender might average that out to $5,000 per month to assess your borrowing power.

The goal is to smooth out fluctuations and establish a predictable pattern.

2. Verifiable, Consistent Income Sources

Lenders look for documentation that proves your income is both ongoing and traceable. This could include:

• Tax returns
• Bank statements
• BAS (Business Activity Statements)
• Invoices or payslips
• ATO income summaries

The more paper trails, the more comfortable lenders will be with your situation.

3. Industry & Employment History

Being in the same field or industry for a long time, even if through different employers or contracts. Builds confidence in your future earning potential.

A freelancer who's been working in digital marketing for 3 years is viewed more favourably than someone who just started last month.

What Documents Do You Need?

To get a home loan with irregular income, proving your earnings is everything. The stronger your documentation, the more confidence a lender will have in your ability to meet repayments, even if your income varies month to month.

Here's a side-by-side comparison of the key documents required for different income types, so you can quickly see what applies to your situation:

For Self-Employed, Freelancers & Contractors

• 2 years of personal and/or business tax returns
• ATO Income Summary (formerly PAYG summary)
• 12 months of bank statements showing regular income deposits
• BAS statements (if registered for GST)
• ABN and business registration details
• Profit & loss statement (especially for sole traders)

For Casual & Part-Time Employees

• Recent payslips (typically 2-3 covering the last 6-8 weeks)
• Employment letter confirming role, hours, and income consistency
• Group certificate or ATO Income Summary
• Bank statements showing incoming pay

Tip: Even if you earn from multiple jobs or gigs, lenders can consider combined income, as long as each stream is properly documented.

Getting these documents right is often the difference between approval and rejection. That's where Stryve Finance can help, we'll review and package your paperwork so lenders see the full picture.

Can Centrelink, Bonuses or Side Hustles Count as Income?

When you're applying for a home loan with irregular income, every bit of earnings can help, but not all income types are treated equally by lenders.

Income That May Be Accepted

Lenders are open to using these income types if they are consistent, documented, and ongoing:

• Centrelink payments
  Some lenders will accept Family Tax Benefit, Parenting Payments, or Disability Support Pension as part of your income, especially when combined with employment income.
• Bonuses and commissions
  If received regularly (e.g., quarterly or annually) over the last 12+ months and proven via payslips or tax returns, many lenders will average them into your income.
• Side hustle or secondary job
  Whether it's freelancing, rideshare driving, or selling on Etsy, if it's been running for at least 6-12 months and supported by bank statements or BAS, it can help boost your serviceability.
• Rental income
  Often included at 70-80% of the total amount to account for vacancies or property costs.

Income That Usually Isn't Accepted

Some income types are seen as too risky or temporary, including:

• One-off lump sum payments (like an inheritance or short-term gig)
• Temporary contracts with no extension
• Informal cash jobs without paper trails
• Most non-taxed Centrelink payments (like one-off grants)

Example:

A casual retail worker who also drives for Uber and receives Family Tax Benefit could be assessed using all three sources, if they're documented properly.

At Stryve Finance, we'll help you determine what income is usable and work with lenders that accept the full scope of your earnings.

Alternative Loan Options for Irregular Income

If the big banks are too rigid or your financials don't meet traditional criteria, don't stress, there are alternative pathways to get a home loan with irregular income.

In fact, specialist lenders now write more than $10 billion in non-conforming loans annually, catering to borrowers with irregular or non-traditional income sources, according to CoreLogic's lending market analysis.

1. Low-Doc (Low Documentation) Loans

Low-doc loans are designed for self-employed borrowers who can't provide full tax returns. Instead, lenders may accept:

• Business Activity Statements (BAS)
• Bank statements showing income inflow
• An accountant's income declaration

Pros: Easier to qualify, flexible documentation

Cons: Slightly higher interest rates, lower borrowing limits, larger deposits required

2. Guarantor Loans

If your income is irregular but you have a family member (usually a parent) willing to guarantee part of your loan, a guarantor loan can:

• Help you borrow more
• Reduce or eliminate Lenders Mortgage Insurance (LMI)
• Strengthen your overall application

Note: The guarantor takes on risk if you default, so it's a serious commitment.

3. Specialist (Non-Bank) Lenders

These lenders focus on real-world income, not just paperwork. They often accept:

• Multiple income streams
• Seasonal earnings
• Short-term contract income

Some examples include Liberty, Pepper Money, Bluestone, and Firstmac, and they work through brokers like Stryve Finance.

Not sure which is right for you? We'll help you assess the best strategy, and connect you to lenders who understand your income.

Why Work with a Mortgage Broker Like Stryve Finance?

When you're trying to get a home loan with irregular income, choosing the right lender is only half the battle; the real challenge is presenting your income in a way lenders trust.

That's where working with a broker like Stryve Finance makes all the difference.

Here's how we help:

• We know the lender policies
  Every lender has different rules around casual, freelance, or self-employed income. We know who says “yes” and who doesn't, so you won't waste time applying to the wrong bank.
• We position your income strategically
  Whether your earnings come from gigs, commissions, or side hustles, we package your documents to highlight consistency, reliability, and growth.
• We save you time (and rejections)
  Multiple applications can hurt your credit score. We get it right the first time by submitting your application where it's most likely to succeed.
• We fight for your approval
  Need to explain seasonal income? Multiple streams? Fluctuations? We communicate directly with the lender so they see the full picture, not just the numbers.

Ready to get started? Book a free consult with one of our expert mortgage brokers and take the first step toward owning your home on your terms.