These types of loan are suitable for PAYG contractors, self employed contractors and subcontractors.
PAYG contractors have tax withheld and super as well as having sick leave and holiday leave. They can be employed on a fixed term, short term or long term.
Self employed contractors are normally sole traders with registered ABN. In some cases, self employed contractors set up a trust or company and are employed on PAYG basis. Most lenders required the self employed borrowers to be in the current role for minimum 2 years.
Most lenders consider the contractors as casual employment because they think contractors do not have stable employment; their contracts can be cancelled anytime.
Depending on the employment contract, you can borrow up to 95 per cent plus lender mortgage insurance (LMI).