Can I Get a Mortgage with a Signed Employment Contract?

You’ve secured a new job, signed a new contract, but are left wondering: “Will I still be able to get a mortgage without a payslip and just a signed contract?”

It’s one of the most common questions we hear at Boon Brokers, and many worry that not having three or six months of payslips could affect their chances of approval, even when there is a change in salary that has increased and the new role offers greater long-term stability.

The good news is that it is absolutely possible to get a mortgage with a signed employment contract, and many lenders will consider an employment contract for mortgage purposes instead of waiting for payslips. Rather than focusing on one missing document, lenders will look at the mortgage application as a whole, including your previous employment history, credit profile, deposit size, and how secure the new role appears.

In this article, we explore exactly when lenders will accept a signed employment contract as proof of income, which supporting documents are still needed, and how to find the best lenders for your unique circumstances. Let’s begin.

When Can Employment Contracts Be Used as Proof of Income for a Mortgage?

Applying for a mortgage with an employment contract usually happens when somebody has recently started a new job, secured a promotion, or signed a contract for a role that is dated to start in the future, but has not officially started yet.

The most important consideration to keep in mind is that while the income may look stronger on paper – particularly in the cases of promotion – lenders will still need to assess and see evidence of a strong financial foundation.

In practice, while there are lenders who are willing to assess future income before the first payslip arrives, this is considered more uncommon than a standard practice and approval will always depend on the application in its entirety.

Cases like this are usually viewed more favourably where somebody is moving directly into another permanent role without a gap in employment. This is commonly seen in situations such as:

• Relocating for a new job opportunity
• Moving from education into a first salaried role
• Accepting a promotion with increased income
• Changing jobs within the same industry

In situations like these, some lenders may be more comfortable assessing the current and projected income rather than relying entirely on historic payslips.

Timing can also make a difference. Some lenders may only consider applicants whose start date falls within a certain time-frame – usually within 3 months – while others may allow slightly longer timelines where the employment background and wider application appear particularly strong.

It’s important to note that if you’re planning on providing proof of income using an employment offer contract, then the contract needs to be signed and issued directly by your employer. Lenders will generally never provide a mortgage offer based on a provisional offer or an informal email confirmation.

Ultimately the contract itself will still only form one part of the decision. Lenders will want to look at the complete mortgage application before making a final judgement. This will include previous employment history, credit score, total deposit size, existing financial commitments, and how financially secure the new contract appears overall.

Lender Criteria for Contract-Based Applications

First and foremost, there are no single set of rules that every lender will follow and each lender will have their own specific criteria. This will usually assess the borrower’s risk, financial standing, current affordability, total deposit amount, and employment stability.

This is the reason why the same mortgage application could receive completely different outcomes depending on the lenders involved, and highlights the importance of choosing the right lender for your situation.

For example, while some lenders may be comfortable assessing current and projected income from a signed employment contract, many other lenders will have a criteria that requires a minimum of three months’ payslips before considering the application.

In the context of the general lender requirements for contract-based mortgage applications, lenders will typically assess:

• The type of employment and whether the role is permanent or temporary
• The date in which the new role starts
• Any previous employment history and evidence of career stability
• Credit score and borrowing history
• Any existing financial commitments, including loans and credit cards
• Total deposit size and overall affordability
• Bank accounts, including overdraft use or missed payment
• Income patterns

As a result, applicants who are moving directly into another permanent role, without a gap in employment, will often be viewed more favourably than somebody moving into short-term or irregular contract work.

How can I find a lender that has a criteria that accepts contract-based mortgage applications?

Finding a lender whose criteria aligns with your circumstances can make a significant difference to whether your mortgage will be approved or rejected. That’s why working with a whole-of-market broker can help you search the wider mortgage market for a lender that matches your unique circumstances.

At Boon Brokers our dedicated mortgage experts will identify and match you with lenders that are already comfortable with contract-based applications to help you avoid any unnecessary delays or worries about rejections, before you apply for your mortgage.

Additional Documents You May Need for a Mortgage Without Payslips

Applying with a signed employment contract instead of payslips is considered by lenders as a unique or uncommon mortgage application. As such, lenders will often request additional supporting documentation to help provide them with greater clarity around your financial situation and future income.

To help you understand the different types of documentation that may be requested during the application process, we’ve created a table below that outlines some of the most common documents lenders may ask for and why:

Making sure that you have the correct documents ready at hand early in the mortgage process can help avoid delays later on. In most cases, lenders are simply looking for consistency across the application.

Ultimately, the stronger and more organised the supporting evidence appears, the easier it becomes for lenders to assess the case without relying entirely on future income projections.

What Are the Risks and Limitations of Using an Employment Contract for a Mortgage?

The biggest limitation of using an employment contract instead of payslips in your mortgage application is that your choice of lenders will likely become far more restricted.

Borrowers applying for a mortgage application with only an employment contract will often face:

• A smaller pool of lenders to choose from
• Stricter affordability and eligibility checks
• Requests for additional supporting documentation
• Longer application processing times

In addition, it’s important to understand the different types of employment contracts. Lenders will be much more concerned in cases where the employment is temporary, the start date is still several months away, or the income structure relies heavily on bonuses or commission.

As a general rule, lenders will always look for evidence that helps mitigate their risk by reducing any uncertainty around the application. This is why borrowers are often asked to provide extra supporting documentation, such as bank statements, proof of deposit, employer confirmation letters, and evidence of previous employment history.

While there are certain risks and limitations that come with applying for a mortgage with only an employment contract, this in no way means that it is impossible to secure a mortgage. Instead, the extra documentation and supporting evidence required only highlights the importance of finding a lender whose criteria already aligns with contract-based applications from the start.

Which Mortgage Lenders Are Best for Applicants With Only Employment Contracts?

As we’ve outlined throughout this guide, applying for a mortgage using only a signed employment contract will naturally reduce the number of lenders available to you. With that said, there are still lenders that may consider these applications depending on the wider application and circumstances.

Below, we’ve listed some of the most popular lenders and banks that may consider employment contracts as proof of income. Please note that this information is subject to their latest lending criteria and affordability checks.

It’s important to remember that lender criteria can change regularly and will often depend on factors such as the employment type, deposit size, credit history, and how soon the new role is due to begin.

This is one of the main reasons many people choose to work with a whole-of-market broker before submitting their mortgage applications. Rather than approaching lenders individually, an established broker will be able to identify exactly which lenders are currently comfortable with contract-based applications and whether the circumstances are likely to meet their criteria.

At Boon Brokers, our expert advisers are well versed in cases involving signed employment contracts instead of payslips. By matching applicants with lenders that best suit your unique situation, we can help you avoid the risks of unnecessary delays, rejected applications, or unsuitable lender choices.

Get in Touch with a Mortgage Adviser

Applying for a mortgage with only a signed employment contract can be more complicated than a standard employed application, particularly as each lender will have their own unique criteria on how they treat future income and payslip requirements.

Understanding exactly which lenders you should be targeting and what additional documentation you can provide to help bolster your application is where a mortgage broker can make all the difference to the success of your mortgage.

At Boon Brokers, our dedicated experts regularly help buyers secure mortgages with unusual or more complex situations, including applications involving signed employment contracts instead of payslips. As a fee-free, whole-of-market mortgage broker, we compare lenders from across the market to help identify those whose criteria are best suited to your circumstances.

Boon Brokers can help you:

• Find lenders willing to consider employment contracts instead of payslips
• Know which supporting documents are likely to be required
• Reduce the risk of delays or rejected applications
• Find the mortgage that works for you

Contact Boon Brokers and speak to an expert who can help you with your mortgage needs today.
Looking for more information on income proof?

Read our guide on What Proof of Income is Needed for a Mortgage for a complete breakdown on what documentation and requirements you need to meet during the mortgage application process.