Canberra’s workforce runs on a mix of ongoing, non-ongoing, labour hire and contract arrangements. Plenty of people doing permanent-looking work on an indefinite basis are technically on a fixed-term contract, and plenty have just moved agencies and are inside probation.
If a bank has told you no on those grounds, that answer reflects one lender’s credit policy. It doesn’t describe the market. Here’s how each arrangement is actually assessed.
What lenders are actually assessing
The underlying question is never “what’s your contract called?” It’s “how confident can we be that this income continues?”
Lenders answer that by looking at continuity of employment, length of time in your field or sector, your history of contract renewals, and whether your skills are in demand. A three-year run of back-to-back non-ongoing contracts in the same agency tells a much better stability story than a title alone suggests.
Once you understand that’s the question, the evidence you should be gathering becomes obvious.
Ongoing (permanent)
The most straightforward position. Assessed on your payslips and income in the normal way, with no employment-type complication.
The only thing to watch is if you’ve recently moved into an ongoing role from somewhere else, because that can trigger probation considerations, covered below.
Non-ongoing (fixed term)
Extremely common across the APS, and approvable at many lenders. What they want to see:
- Your current contract, including start and end dates
- Your history of prior contracts or renewals, which is the single most persuasive evidence
- Time in the sector, continuous employment across agencies still demonstrates stability
- Any indication of renewal, where your agency can provide it
A contract with several months remaining and a documented pattern of prior renewals presents very differently to a first short contract with no history. Lenders vary in how much remaining term they want to see, which is one of the clearest points of difference between policies.
Probation
This is where policies diverge most sharply. Some lenders decline during probation as a blanket rule. Others accept it, particularly where:
- You have continuous prior employment in the same field, so the move is a change of employer rather than a change of career
- You moved from one APS role to another without a break
- Your probation is a formality of the new role rather than a genuine trial of a career change
The practical point is that being inside probation narrows your options rather than removing them, and a decline from a lender with a strict probation policy says nothing about lenders without one.
Labour hire and contracting
Assessed more cautiously, because the employment relationship is with an agency rather than the department you work in. Expect lenders to want a longer income history, typically evidenced through tax returns or an extended period of payslips, and to look closely at gaps between placements.
If you’ve been contracting consistently for a couple of years, that history does most of the work. If you’ve recently moved from ongoing employment into contracting, some lenders will want to see more time elapse.
Casual
Generally requires a sustained history with the same employer. Six to twelve months is a common expectation, and income is typically assessed on an average rather than recent peaks.
Been declined on your contract type? A quick chat identifies which lenders’ policies actually fit your employment arrangement, rather than accepting one bank’s answer as the market’s.
Call 02 7245 4001 or email info@creditstar.com.au
What to gather before you apply
Whatever your arrangement, these strengthen the application:
- Your full contract history, not just the current one. Prior contracts and renewals are the evidence that matters most.
- A continuous employment record, showing time in the sector even across different agencies or roles.
- An employment letter where your agency will provide one, confirming your role, contract term and any expectation of continuation.
- Consistent bank statements, since lenders read spending patterns alongside income. See APS payslip to pre-approval for the full document list.
Timing your application
A few timing considerations genuinely change outcomes:
Don’t apply with two weeks left on a contract. Lenders are considerably more comfortable with meaningful time remaining. If renewal is expected, waiting for it to be confirmed can transform the application.
If you’re in probation, consider whether waiting is cheaper than applying widely. Multiple applications and declines leave marks on your credit file. One well-targeted application after probation often beats three during it.
If you’ve just moved into contracting, time helps. Each additional month of consistent contracting income improves your position with lenders that assess it on history.
Why a broker matters most in this situation
For a straightforward ongoing salary with a good deposit, most lenders will say yes and the difference between them is mostly price.
For a non-ongoing contract, probation, or labour hire arrangement, the difference between lenders is whether you get approved at all. Policies on employment type vary more than almost any other assessment criterion, and matching your circumstances to a lender whose policy accommodates them is the entire game. See how mortgage brokers work.
The bottom line
Non-ongoing contracts, probation periods, labour hire and casual work are all financeable. Lenders are assessing the stability of your income, not the label on your employment agreement, and the evidence that moves them is continuity: prior contracts, renewals, and unbroken time in your field. A decline on employment type is a statement about one lender’s policy, and there are usually others whose policy fits.
To find a lender that suits your arrangement, get in touch with Harbir, or explore our home loan options.
Call 02 7245 4001 | Email info@creditstar.com.au
Frequently Asked Questions
Q1. Can I get a home loan on a non-ongoing APS contract?
Ans. Often yes. Lenders want your current contract, its end date, and ideally a history of prior contracts or renewals. A documented renewal pattern is the most persuasive evidence you can provide.
Q2. Can I get a home loan while on probation?
Ans. It depends on the lender. Some decline during probation as policy; others accept it, particularly where you have continuous prior employment in the same field and simply changed employers.
Q3. Why did my bank decline me for being on a contract?
Ans. Because that lender’s credit policy requires a certain employment type or contract length. It reflects their policy rather than your borrowing capacity, and other lenders assess contracts differently.
Q4. How much time do I need left on my contract?
Ans. Policies vary, but applying with only a few weeks remaining is difficult. Meaningful remaining term, or a confirmed renewal, substantially strengthens the application.
Q5. Does time in the APS help if I’ve changed agencies?
Ans. Yes. Continuous employment across different agencies still demonstrates sector stability, which is what lenders are assessing rather than tenure with one employer.
Q6. How do lenders assess labour hire or contracting income?
Ans. More cautiously, since your employer is the agency rather than the department. Expect to need a longer income history, often via tax returns, and expect gaps between placements to be examined.
Q7. Can I get a home loan on casual work?
Ans. Generally yes with a sustained history with the same employer, commonly six to twelve months, with income assessed on an average rather than recent peaks.
Q8. Should I wait until probation ends before applying?
Ans. Often yes, if you can. Multiple applications and declines mark your credit file, so one well-targeted application after probation frequently beats several during it.
Q9. Will an employment letter from my agency help?
Ans. It can. A letter confirming your role, contract term and any expectation of continuation gives the lender evidence of stability beyond the contract document itself.
Q10. Does a decline on employment type affect future applications?
Ans. The application itself creates a credit enquiry, and several in a short period look unfavourable. That’s why targeting the right lender first time matters more with non-standard employment.
This guide is general information only and doesn’t take into account your personal situation. Lender employment and income policies vary significantly and change, confirm current requirements before applying. For advice specific to your circumstances, book a call with Harbir Hundal, Credit Representative 506564 of BLSSA Pty Ltd ACN 117 651 760, Australian Credit Licence 391237.