Engineers
You're paid like an engineer. Most lenders assess you like a payslip.
Engineers are among the higher earners in Australia, but their income rarely fits a standard assessment template. The issue usually is not earning capacity. It is how the income is read, and which lender reads it.
Civil · Structural · Geotechnical · Mechanical · Electrical · Mining & resources · Chemical & process · Building services · Software · Environmental · Every engineering discipline
Where you sit
Choose the page that fits how you're paid
Employed & FIFO
PAYG, FIFO, DIDO and graduate engineers. Overtime, allowances, rosters, probation and HECS.
OpenSelf-employed & contract
ABN and Pty Ltd contractors, consultants and engineers going out on their own.
OpenFirm owners
Working capital, guarantees, equipment, premises and facility reviews.
OpenContract and day-rate income
Lenders make different assumptions about how many weeks a year to annualise a day rate over. Some default ABN contractors to two years of tax returns. Others assess the current contract rate with a shorter history in the same field. A PAYG contractor paid through an agency and an ABN contractor invoicing directly can be assessed very differently.
Overtime, allowances and FIFO rosters
Some lenders accept regular overtime and allowances in full. Others discount them, often by around 20%, and some exclude irregular payments. The gap can move borrowing power by an illustrative $100,000 or more, depending on the full position and lender criteria.
Self-employed and Pty Ltd income
Taxable income is prepared for tax. Depreciation on plant and equipment, one-off costs and director's wages may be added back at selected lenders, subject to lender criteria, but only when the numbers are reconstructed and supported.
Contract end dates and gaps between projects
A contract ending within six months, a gap between projects or unpaid leave can cause some lenders to assume a lasting income drop. Evidence of industry history, a renewal or extension letter, or a lender with a better-fitting policy may change the assessment. Policies change.
Changing roles and probation
Moving firms, relocating for a project, or going from PAYG to contracting can pause lending with some lenders and not with others. The order matters, particularly when a home purchase and a role change overlap.
Car loans, novated leases and credit enquiries
A vehicle repayment can cut borrowing power by an illustrative tens of thousands of dollars. Multiple declined applications also leave enquiries on your credit file. Check the load before adding it.
Firm cashflow
Progress claims, retentions held through practical completion and the defects liability period, and 30–60+ day debtor terms create cashflow gaps even in profitable engineering firms.
Time
You are focused on the role or the business. Your own finance becomes the job that never gets scoped, while contract dates, documentation and lender policy keep moving.
Benefits for eligible engineers
Professional LMI waivers at selected lenders for eligible engineers. Criteria apply.
Contract income assessed on the current rate at selected lenders, subject to history and documentation.
Regular overtime and allowances counted at selected lenders. Policies change.
Facilities for engineering firms, subject to trading history and credit approval.
Why engineers
I have spent years working with civil and construction clients and I am currently studying engineering. Engineering income is complex: day rates, rosters, allowances, contract end dates and firm financials all need to be read properly before a lender sees them.
Common assumptions
What you've been told, and why it's wrong
| Told | Why it's wrong |
|---|---|
| You need two years as a contractor before you can borrow. | Some lenders accept a shorter history when you have contracted in the same field you worked in as an employee, subject to lender criteria. |
| Your bank knows you, so they'll assess you best. | Knowing your transactions is not the same as having policy that suits contract or roster income. |
| Overtime never counts. | Regular, evidenced overtime and allowances can count at selected lenders and, for eligible engineers, may be accepted in full. Criteria and policies change. |
| All engineers get LMI waived. | Eligibility varies by lender, discipline, income and loan size. Some lenders exclude engineers entirely, and all applications remain subject to credit assessment. |
General information only. It does not consider your personal circumstances. Eligibility, loan-to-value limits, professions covered and lender policies vary and change. Subject to lender credit approval.
Put the real numbers in front of you.
I'll read the position, show the calculation and explain the trade-offs, no guesswork, no rework.