Can You Refinance on Casual or Contract Income?
Yes. Casual and contract work is common in health, education, hospitality, construction, IT and government, and lenders have established ways of assessing it. What they are testing is continuity: is this income likely to keep arriving?
What Do Lenders Need for Each Type of Employment?
| Employment type | Common requirement |
|---|---|
| Casual | Six to twelve months in the current role; some lenders accept three months with longer industry history |
| Fixed-term contract | Time remaining on the contract, or evidence of previous renewals or continuous work in the field |
| Labour hire or agency | Similar to casual; consistent hours over six to twelve months |
| PAYG contractor on a day or hourly rate | Often assessed as an employee, with the rate annualised over a set number of weeks |
| Seasonal work | Usually needs two years of history showing the pattern |
These are general patterns across the lending market, not rules. Each lender sets its own policy and changes it without notice, which is the practical reason to have the scenario checked against 50+ lenders before applying.
How Do Lenders Calculate Casual Income?
Because hours vary, lenders rarely use a single payslip. The usual method is to take your year-to-date gross income and annualise it across the weeks worked, then compare the result with last year's income statement. Some lenders annualise over fewer than 52 weeks to allow for unpaid breaks. If your year-to-date figure covers only a short period, the prior year carries more weight.
A casual teacher or agency nurse who has changed employers three times in two years can look unstable on a form and be perfectly stable in reality. Some lenders only look at time with the current employer. Others look at time in the industry. For casual and contract clients I go to the second group, and I set out the work history clearly so the assessor sees continuity instead of gaps.
What Evidence Helps a Casual or Contract Application?
- Payslips showing year-to-date income, and your last income statement.
- Your current contract, plus previous contracts if you have been renewed.
- A letter from your employer or agency confirming your role, usual hours and start date.
- Three to six months of bank statements showing regular pay.
What If You Are a Contractor With an ABN?
If you invoice through your own ABN, most lenders treat you as self-employed and ask for tax returns or alternative documentation. That is a different pathway, covered in home loans for contractors and self-employed refinancing. Purchase lending for casual workers is covered in home loans for casual employees.
Is Now the Right Time to Refinance?
If you have just changed roles or your hours have recently dropped, waiting a few months for a stronger year-to-date figure can produce a better result. In the meantime, a reprice with your current lender needs no income assessment at all. See repricing vs refinancing and refinancing on a PAYG salary.
General information only. It does not take your objectives, financial situation or needs into account. All lending is subject to lender assessment and approval. Fees and figures are typical ranges at 14 November 2026 and can change. Lend & Loan, Australian Credit Licence 511092.
