Can contractors get home loans in Australia?

Yes, contractors can absolutely get home loans in Australia. The challenge is that 80% of lenders have policies that make it difficult for contractors, but the remaining 20% have lending policies specifically designed to assess contractor income correctly. Working with a broker who knows which lenders approve contractors significantly improves your chances.

How much can I borrow as a contractor?

Your borrowing capacity depends on your contractor type and how lenders calculate your income. PAYG contractors with 6+ months history can often borrow similar amounts to permanent employees. Self-employed contractors typically need 2 years of tax returns, and lenders will assess your taxable income (or use accountant add-backs to recover deductions). Most contractors can borrow 5-6 times their annual taxable income, but this varies by lender and your specific situation.

Will my contract end date affect my home loan application?

It can, but there are ways around it. If your contract ends in less than 6 months, some lenders will decline automatically. However, if you have a strong contract renewal history, a letter from your employer indicating likely renewal, or work in a high-demand industry, many lenders will still approve you. We know which lenders ignore contract end dates and which ones require longer remaining terms.

Can I get a home loan if I just started contracting?

Yes, but it depends on your contractor type. PAYG contractors can sometimes qualify after just 3-6 months if they have previous permanent employment in the same industry. Self-employed contractors typically need at least 12 months trading history, though some specialist lenders accept less. The key is applying to lenders with policies that match your specific situation.

Do contractors pay higher interest rates?

No, contractors don't automatically pay higher rates. If you're approved by a major bank or quality non-bank lender, you'll access the same competitive rates as permanent employees. The myth exists because contractors who get declined by mainstream lenders sometimes end up with non-conforming lenders charging 7-9% rates. By applying to the right lender from the start, contractors access standard market rates of 6-7%.

What documents do contractors need for a home loan?

It depends on your contractor type. PAYG contractors need: Last 3-6 months of payslips, Current employment contract, Personal bank statements (3-6 months), and Standard ID verification. Self-employed contractors need: Last 2 years of tax returns and Notices of Assessment, Recent BAS statements or business bank statements, Business financials if operating through a company/trust, Personal bank statements (3-6 months), and ABN and GST registration details. We'll tell you exactly what your specific lender needs during your free assessment.

Can I use my ABN income to qualify for a home loan?

Yes, you can use ABN income, but lenders assess it differently than PAYG income. They'll look at your tax returns to see your taxable income after deductions. If you've claimed significant deductions to reduce tax, this can lower your borrowing capacity. However, accountant letters explaining legitimate add-backs (like depreciation, one-off expenses, or vehicle costs) can recover $50K-$200K in borrowing capacity.

What deposit do contractors need?

Contractors need the same deposit as anyone else, though some lenders require 20% deposit where they'd accept 10% from permanent employees. With strong income history (2+ years), contractors can access 90-95% LVR (5-10% deposit) at many lenders. First home buyers can use the First Home Guarantee scheme with just 5% deposit. Professional contractors (medical, legal, accounting) often access LMI waivers at 90% LVR regardless of employment type.

Banks Reject 80% of Contractors.
We Approve Them.

You earn more than employees but get rejected automatically. We know the 20% of lenders who actually understand contractor income.

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The Problem

Big 4 banks auto-reject contractors due to 'income instability,' even $200K earners get declined

The Reality

You're not higher risk. Banks just don't know how to assess your income correctly

Our Solution

We match you to the right lender first time. No wasted applications, no credit damage

Stryve Finance team discussing contractor home loan strategies

Most contractors get declined for the wrong reasons

You're not higher risk than a permanent employee. You often earn more, have better savings, and stronger credit scores. But here's what's actually happening: most lenders use 30-year-old assessment criteria that weren't designed for modern contractor home loans.

80% of Australian lenders automatically flag contractors as "income unstable" before anyone looks at your actual financials. Meanwhile, the other 20% have policies specifically built to assess independent contractor income correctly.

The difference between approval and decline often has nothing to do with your income or deposit. It's about which lender reviews your contractor mortgage application.

Why Banks Decline Contractors

Understanding the real reasons helps you avoid rejection and target the right lenders. We provide solutions for contractors that are tailored to your financial situation and goals.

You Applied to the Wrong 80%

Big 4 banks have contractor unfriendly automated systems. Branch staff lack training on contractor structures. We target the 20% of lenders who have contractor friendly policies and understand your income structure.

Industry Discrimination Is Real

IT and healthcare contractors get preferential treatment. Creative and gig workers face higher scrutiny. We match you to lenders who favour your specific industry, not ones that automatically decline.

Your Income Was Calculated Incorrectly

Claiming $35K in deductions saves $8K in tax but costs you $150K in borrowing power. Accountant add-back letters and alternative documentation can recover $100K-$200K in borrowing capacity.

Expertise That Makes
All The Difference

We Speak Lender Language

We package your application in the exact format lenders need. Day rates get annualised correctly. ABN income is presented with proper add-backs. Contract terms are explained with context. Your application lands on the assessor's desk ready to approve, not flagged for clarification.

Access to Professional Packages

Medical, legal, and accounting contractors access LMI waivers at 90% LVR, saving $15K-$30K. IT contractors qualify for preferential rates, it all depends. We unlock professional lending packages that are not advertised publicly and most brokers don't know exist.

We Know Which Lenders Approve Contractors

We've mapped the entire Australian lending market. We know exactly which lenders approve PAYG contractors with 6 months history, which accept self-employed with 12 months, and which auto decline regardless of income. You get matched to the right lender first time.

Documentation Right First Time

Every lender wants different documents. We know precisely what each one needs before you apply. Accountant letters structured correctly. Payslips from the right period. No delays, no requests for additional paperwork, no declined applications due to missing documents.

Find Out Which Lenders Will Approve You.

Free 15-minute assessment. We'll tell you exactly which lenders work with your contractor type and how much you can borrow.

Our 5-Step Process for Independent Contractors

Getting a contractor home loan approved doesn't need to be complicated. We've refined this process over 200+ contractor applications. Here's exactly what happens when you work with us.

We'll be with you at every stage. No need to figure it out all alone!

Free Assessment

We assess your contractor type, income structure, and home ownership goals. We'll tell you which lenders will approve you, how much you can borrow, and what documents you'll need.

Documentation Preparation

We help you gather the right documents for your specific contractor type. PAYG contractors need different paperwork than self-employed. We make sure everything is lender-ready before submitting.

Lender Selection & Application

We match you to the lender most likely to approve your application. We package your income correctly, present your contract history with context, and submit to the right lender first time. No wasted applications.

Processing & Conditions

The lender assesses your application. We handle all communication, respond to any queries immediately, and chase progress. If they request additional documents, we know exactly what to provide.

Approval & Settlement

Once approved, we coordinate with your solicitor to arrange settlement. We stay in touch to ensure your loan remains competitive and check in regularly to see if refinancing could save you money.

What documents you'll need (and why)

Most lenders ask for similar documents, but what matters is how you present them. Here's what we typically need to build a strong contractor home loan application.


	Recent BAS or business bank statements	Demonstrates current trading activity and cashflow. Particularly important if your latest tax return is more than 6 months old.
	Financials (P&L and balance sheet)	Required if you operate through a company or trust structure. Shows assets, liabilities, and business health.
	ID and ABN/GST details	Standard verification for all self-employed applications. Driver's licence, Medicare card, and ABN registration.
	Current employment contract or letter	For PAYG contractors, this proves your day rate, contract duration, and employer details. Renewal letters help if your contract is ending soon.
	Last 3–6 months of payslips	PAYG contractors need recent payslips showing consistent income. We use these to calculate your annualised earning capacity.
	Personal bank statements (3–6 months)	Shows living expenses, existing debts, and savings history. Lenders verify genuine savings held for 3+ months.
	Accountant notes on unusual expenses	Helps explain one-off costs or seasonal variations that could affect your income assessment. Can add back $50K-$100K in borrowing capacity.

find out which lenders approve you

book a free assessment

What our customers
say about us

Don't just take our word for it. See what hundreds of satisfied clients across Sydney say about their experience with Stryve Finance.

“Nate and Dylan were extremely helpful in helping us secure our new home. They were easy to contact from day one, and answered any questions we had. We felt reassured at all times and are very grateful for their patience with us. I have recommended Stryve to 3 friends now who have all been successful in achieving their goals of purchasing their homes. We are so happy with the service and will definitely keep on recommending Stryve to our family and friends.”

Whitney Tran

Homeowner

“I never had a problem with Dylan. From the start of our journey on mortgage til the very end and even with refinancing, he/they were very helpful, transparent, honest and really keen to help their clients! Highly recommended.”

Cristianne Del Valle

Homeowner

“On behalf of my husband and I, we would like to truly thank Dylan Bertovic for all his assistance in helping us with our new loan - approved in time before our settlement. Dylan worked above and beyond expected. He took the time to explain every step and process with us. Any questions we had, Dylan would go out of his way to ensure they were answered. He made the process stress free and ensured we got the best possible deal. We highly recommend Dylan to all our family and friends.”

Merna Yalda

Homeowner

“Nate is great to work with, very knowledgeable, responsive and genuinely invested in helping me find the right solution. Highly recommend this firm to anyone looking for reliable, competitive and professional brokerage services.”

Julia

Homeowner

“Dylan has not only been a longtime friend, but also the trusted mortgage broker of choice for my family. He answers the phone at all hours, communicates extensively through all steps of a sometimes-complicated process and manages my risk. He has a straight to the point approach which I appreciate. Simply gets the job done, and gets it done very quickly. Thanks for everything Dylan, you're a champion broker and a good mate.”

Christian Barać

Homeowner

“Nate and Dylan were the ultimate professionals in securing a home loan to help us purchase our first home! Following the purchase of our home, they have continued to provide their exceptional service and have been able to secure two rate reductions in six months! Being self-employed wasn't an issue for me as Nate knew the process back-to-front and was able to provide sound advice throughout the application process.”

Justin Tomas

Homeowner

“It was an absolute brilliant experience with Stryve. Our first purchase was with Dylan he was always clear re: the next steps, quick to respond, never tired of questions and went over and above with communication. We went back and used him again for our next investment and the experience was just as wonderful as the first. Stryve also reviews our loans every 6 months to make sure we are getting the best rates on offer. We couldn't ask for more!”

Amber Motii

Homeowner

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From the blog

Contractor lending is complex and constantly changing. Stay up to date with the latest lender policy updates, documentation requirements, and strategies to improve your approval chances.

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