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Contractor Home Loans — PAYG and ABN Contractors in Sydney

Mortgagefy Broker Team · Published · Last reviewed

Contractor income is treated differently by every lender. Some banks accept PAYG contractor income at 100% of base. Some apply haircuts. Some won't lend at all without 2 years of contracts. We know which lenders treat contractors well — IT, engineering, healthcare, finance, government — and which ones discount your income unfairly.

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Who this guide is for

The real challenge

A PAYG contractor on a $200K daily rate often gets assessed by major banks at 80% of base — losing $40K of borrowing income on paper. ABN contractors face the full self-employed rule set: 2 years of returns, accountant declaration, BAS history.

The reality is most contractors have stable, predictable incomes — they just don't fit the 'permanent employee' box that lender automation expects. Without the right broker, you get an artificially low borrowing capacity.

How Mortgagefy helps

Mortgagefy works with the lenders that understand contractor income — including those that count overtime, allowances and bonus rates at full value. We know which IT contractors get full-base assessment, which healthcare contractors qualify on shift differentials, and which lender wants what evidence.

We model your real borrowing capacity across 4-6 lender scenarios so you can see the difference. Then we lodge with the lender that gives you the strongest position.

How it works — 4 simple steps

1

Contract review

We review your current contract, day rate, history and any gaps to map borrowing capacity.

2

Lender shortlist

Different lenders treat contractor income differently — we shortlist the 2-3 most generous for your profile.

3

Document pack

Contract, payslips, tax returns, accountant letter (if ABN) — we tell you exactly what's needed.

4

Settlement

Application, valuation, settlement coordinated. Most contractor loans settle in 4-6 weeks.

Frequently asked questions

Can I get a home loan as a 6-month contractor?

Yes — many lenders accept PAYG contractors with as little as 12 months in the same industry, even on rolling 6-month contracts. The key is consistent industry tenure, not contract length.

How is ABN contractor income assessed?

ABN contractors are assessed as self-employed — typically 2 years of tax returns and BAS, or low doc with accountant's declaration. We can pre-model your capacity under both.

Will banks count my full day rate?

Some lenders count 100% of base. Some apply 80% haircut to contractor income. We know which is which — the difference can be $100K+ in borrowing capacity.

What if I have gaps between contracts?

Up to 4-6 weeks between contracts is usually fine. Longer gaps (3+ months) need explanation. We package this in the application narrative so it doesn't trigger an automatic decline.

Should I switch to PAYG before applying?

Sometimes yes — but it depends on your role, rate and timing. If you're 6 months from buying, switching to PAYG can simplify the application. We model both scenarios.

Get a free Sydney contractor home loan assessment

We model your borrowing capacity across multiple lender scenarios — so you see exactly which lender gives you the strongest position.

Start Your Free Assessment Call 0432 634 648

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