Your income determines how much you can borrow, but employment type decides whether a lender will approve you at all.
Lenders in Robina see everything from full-time PAYE workers at Robina Town Centre retailers to self-employed contractors servicing the local construction boom. Each employment structure changes how your application is assessed, what documentation you'll need, and which loan products become available. The difference between a smooth approval and a declined application often comes down to understanding how your specific income is viewed before you apply.
How Lenders Calculate Serviceability from Your Income
Serviceability is the amount a lender believes you can comfortably repay based on your income, minus your living expenses and existing debts. Most lenders apply a buffer of around 3% above the current variable rate to ensure you can still afford repayments if rates rise. Your gross income is assessed first, then lenders subtract tax, living expenses based on the Household Expenditure Measure (HEM), and any other loan commitments like car finance or credit cards.
Consider a Robina household with two incomes totalling $140,000 annually. If they carry $15,000 in personal loan debt and have a $10,000 credit card limit, the lender reduces their borrowing capacity significantly even if the card has a zero balance. Closing that card before applying could lift their loan amount by $40,000 or more, depending on the lender's formula. We regularly see applicants surprised by how much unused credit affects their borrowing capacity.
Full-Time and Part-Time Employment: What Counts as Stable
Permanent employment with a probation period completed gives you access to the widest range of lenders and the lowest rates. Lenders view this as stable income and typically require two recent payslips plus a letter from your employer confirming your role, salary, and employment start date.
Part-time work is treated the same way, provided your hours are consistent and your employer confirms ongoing employment. If your hours fluctuate week to week, some lenders will average your income over three to six months rather than relying on your contract alone. A part-time retail worker at Pacific Fair earning $50,000 annually will be assessed the same way as a full-time employee in Robina, as long as the income is verifiable and the role is permanent.
Casual and Contract Income: How Long You Need to Prove It
Casual employees generally need 6 to 12 months of consistent income with the same employer before most lenders will consider the income stable. Some lenders will accept shorter periods if you're in a high-demand industry and can show regular shifts.
Contractors on ABN income are assessed differently again. If you've been contracting for less than two years, many mainstream lenders will decline the application outright or require a larger deposit. A contractor working in the tech sector at one of Robina's corporate parks might earn $120,000 annually, but without two years of tax returns and ABN registration, their self-employed loan options narrow to specialist lenders who charge higher rates or require more documentation upfront.
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Bonuses, Overtime, and Commission: When They're Included
Most lenders will include bonuses and overtime if they've been paid consistently for at least 12 months and your employer confirms they're likely to continue. Commission income usually requires two years of history, and lenders often apply a discount, averaging your commission over that period rather than taking the most recent year alone.
In a scenario like this: a sales manager in Robina earns a base salary of $85,000 plus commission that has ranged from $20,000 to $45,000 over the past two years. The lender averages the commission at $32,500 and then applies an 80% weighting, adding just $26,000 to the base income for serviceability purposes. That results in an assessed income of $111,000 instead of the $130,000 earned in the most recent year. Knowing this in advance helps set realistic expectations around loan amount and avoids the disappointment of a lower pre-approval than expected.
Self-Employed and Company Directors: The Two-Year Rule
Self-employed applicants are generally required to provide two years of full tax returns, including Notice of Assessments from the ATO. Lenders assess your taxable income, not your turnover, which means legitimate deductions that reduce your tax bill also reduce your borrowing power.
Company directors who take most of their income as dividends or retain profits within the business face the same challenge. A director of a Robina-based building company might show $60,000 in personal taxable income but retain $100,000 in the business for cash flow. Most lenders will assess only the declared personal income unless you can structure the application differently with a low-doc product or provide additional evidence of retained earnings. Speak with someone who understands how self-employed loans are structured, because preparation before you lodge can make the difference between approval and referral.
Rental Income from Investment Properties
Rental income is usually assessed at 80% of the gross rent to account for vacancy periods, maintenance, and management fees. If you own an investment property in Molendinar generating $550 per week, the lender will include $440 per week, or around $22,880 annually, in your serviceability calculation.
If the investment loan is interest-only and you're applying for an owner-occupied loan in Robina, the lender will assess the investment loan at principal and interest repayments in their calculation, even though you're currently paying less. This reduces your borrowing power on the new home loan and catches some applicants off guard during pre-approval.
Centrelink and Government Payments
Some lenders will accept certain Centrelink payments as part of your income, particularly Family Tax Benefit, Child Care Subsidy, and Parental Leave Pay. These payments are usually included at 100% if they're ongoing for at least six months after settlement.
Other payments like JobSeeker or Austudy are rarely accepted by mainstream lenders. If Centrelink income makes up a significant portion of your household budget, your options will be limited, and you'll likely need a larger deposit or a guarantor to proceed.
What Documentation You'll Actually Need
PAYG employees need two recent payslips, two years of tax returns if you're claiming significant deductions, and an employment letter on company letterhead. Self-employed applicants need two years of full financials, including profit and loss statements, balance sheets, and ATO Notices of Assessment.
If you've changed jobs in the last 12 months, expect the lender to request a letter from your previous employer as well to confirm employment history. A gap in employment longer than one month will usually require an explanation and supporting documents to show how you supported yourself during that period. Getting these documents together before you start the home loan application speeds up the process and reduces the chance of delays at settlement.
How Employment Type Affects Your Interest Rate
Permanent PAYE employees generally qualify for the lowest advertised rates because lenders view that income as lower risk. Self-employed applicants, even with strong financials, often receive a rate loading of 0.10% to 0.30% depending on the lender.
Contractors and casual employees sit somewhere in between. If your income is consistent and well-documented, some lenders treat you the same as a permanent employee. Others apply a small loading or limit your access to discounted variable or fixed rate products. It's worth comparing lenders rather than assuming your employment type automatically disqualifies you from competitive pricing.
How to Structure Your Finances Before Applying
Pay down credit cards and personal loans before you apply, even if you plan to redraw those funds later. Lenders assess your liabilities at their limits, not their balances, so a $20,000 credit card with a zero balance still reduces your borrowing power by around $80,000.
If you're self-employed, avoid claiming every possible deduction in the year before you apply. A higher taxable income improves your serviceability and opens up more lenders, even if it costs you a bit more in tax. The extra you can borrow often outweighs the short-term tax saving.
Consistent bank statements matter too. Large cash deposits, irregular transfers, or expenses that suggest undisclosed debts will trigger questions from the lender's credit team. Keep your accounts clean for at least three months before you lodge, and avoid changing jobs or starting a new business until after settlement.
Understanding how your income and employment are assessed before you apply puts you in control of the process. Call one of our team or book an appointment at a time that works for you.
Frequently Asked Questions
How long do I need to be in a job before applying for a home loan?
Permanent employees usually need to complete their probation period, typically three to six months. Casual employees generally need 6 to 12 months of consistent income with the same employer before lenders will consider the income stable.
Can I use overtime and bonuses to increase my borrowing capacity?
Yes, most lenders will include overtime and bonuses if they've been paid consistently for at least 12 months and your employer confirms they're likely to continue. Commission income usually requires two years of history and may be averaged or discounted.
Do self-employed applicants pay higher interest rates?
Not always, but self-employed applicants may receive a small rate loading of 0.10% to 0.30% depending on the lender. Some lenders treat well-documented self-employed income the same as PAYG employees and offer the same rates.
How much does an unused credit card affect my borrowing power?
Lenders assess credit cards at their limit, not the balance, so an unused $20,000 credit card can reduce your borrowing capacity by around $80,000. Closing unused cards before applying can significantly increase the amount you can borrow.
What documents do I need if I've changed jobs recently?
You'll need payslips from your current employer, an employment letter confirming your role and salary, and usually a letter from your previous employer to confirm your employment history. Gaps longer than one month may require additional explanation.
