It’s no secret that banks like borrowers with stable employment. So if your work isn’t the standard nine-to-five, getting a home loan could prove a difficult task, particularly for job hoppers, casual workers and the latest generation of Gen Z influencers.
According to leading brokerage firm Finch Financial, a homebuyer’s profession can play a major role in whether a bank approves or declines a home application.
This includes people working freelance, in the hospitality and tourism industry, the creative arts and even new business owners looking to forge a path in the land of entrepreneurship.
“Yes, a bank can decline your home loan application based on your profession. While it might seem unfair, banks are in the business of risk management,” Julian Finch, founder and CEO of Finch Financial, said.
“If they view your income as unpredictable or tied to an unstable or questionable industry, they may choose not to lend.
“Some professions raise more red flags than others. This is why it is important to understand this when you think about applying for a home loan.”
RELATED
Buyers face brutal choice between career and great Aussie dream
Best and worst jobs to buy a home
Leading finance expert and CEO of Finch Financial Services Julian Finch.
Mr Finch emphasised that ethics aside, institutions will consider your home loan application on the basis of how reliable and consistent your income is over time.
“Banks are bound by responsible lending laws, so they must be certain you can meet your mortgage repayments now and into the future,” he said.
“If your application is declined, you might be left wondering why and whether the bank is required to tell you. Unfortunately, the answer is often murky.
“A bank isn’t obligated to give you a full breakdown unless you specifically ask. However, you do have the right to request your credit report and many lenders will provide a general explanation if prompted.”
MORE NEWS
‘Take over it’: Aus’ iconic spot closed for good
‘Turd’: Council stuff-up leads to forced sale
How much extra income you’ll need to buy in 2026
Working in a coffee shop could work against you with banks perceiving the hospitality industry as a high-risk sector.
Mr Finch stressed that not all lenders view every profession the same way.
While one bank may reject a self-employed applicant, another may approve them based on strong financial documentation, a solid savings history and low debt levels.
“There’s no one-size-fits-all in lending anymore. That’s why using an independent broker who understands how different banks evaluate applications is so important especially if your job doesn’t fall into the ‘traditional’ category,” he said.
According to comparison website Finders, the job you pick can also determine the time it will take to save for a home deposit – a decades-long process for some, including nurses, teachers and those in the creative arts.
MORE NEWS: SA’s mortgage-free hotspots revealed
Consider yourself an entrepreneur or influencer? It could work against you when the time comes to apply for a home loan.
By comparison, earning a trade as a roof tiler, plasterer, carpenter and stonemason could get you on to the property ladder sooner than any other profession.
According to the data, those working in a trade with an annual salary of about $75,000 to $85,000 would have saved enough money for a $300,000 house after six years and 13 years for a $500,000 home.
By comparison, university degree holders with a lower starting wage would need eight to 10 years to afford a $300,000 home.
Read more about the data here.
Want a home loan? Find out what the bank really thinks of your job or industry.
Freelancers and gig economy workers
Banks prefer low risk borrowers including people who have a record of long-term employment, Mr Finch said.
“Freelancers and gig economy workers often face challenges because their income fluctuates and may not be supported by long-term contracts.”
People working in hospitality or tourism
The hospitality and tourism sector historically boasts high staff over number due to casual or seasonal roles.
“For this reason people in these industries may also be deemed higher risk due to the sectors’ vulnerability to economic downturns,” Mr Finch said.
Artists, creatives and content creators
Creative folk are frequently self-employed or project-based, which can make their financial situation appear inconsistent.
“Workers in this sector may have regular work but it involves multiple contracts with different clients. This raises the risk profile quite considerably for lenders,” Mr Finch said.
Start-up founders and entrepreneurs
Business owners, start-up founders and entrepreneurs may not yet have a long enough trading history to meet lending criteria.
“Similarly, commission-only workers such as salespeople or real estate agents might be viewed as having unreliable cash flow, even if they earn well,” Mr Finch said.
Influencers and personal service workers
Some financial institutions choose to avoid certain industries such as influencing and personal services because they deem the industries unethical.
“This is certainly the case for people working in the sex industry and on Only Fans,” Finch said.
“While the banks won’t tell you this, they will discriminate against people in these industries on the basis of ethical considerations.”
English (US) · 