The lowest risk applicant is a PAYG employee with stable employment, is not on probation.
Regular salaried payments provide comfort to the lender that there is a steady stream of income
and some lenders will also include commission and regular bonus payments as part of the overall
income. To be considered a PAYG employee, you cannot be a director of the company you are
employed by. If you are a director, refer to self-employed.
Contractors with a long-term contract in place are considered a low-risk by the lender. A contractor
will need to provide a copy of the contract and historical payslips from the company as well as bank
statements to show the payments have been received. If the contract has less than 6 months to run,
you may also need to provide proof that the contract is going to be renewed.
To be considered as a Contractor, you cannot be a director of the company you are engaged by. If
you are a director, or if you are contracting under an ABN, refer to self-employed.
Consultants can be classified in two different ways depending on the arrangement. A consultant
who works for a company and receives payslips from that company will revert back to being a
PAYG employee. Whereas a consultant who consults under their own company or ABN will be