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Can I get a home loan while I'm on workers' compensation?
Bayley Clarke · Mortgage broker on the road · Last checked 11 November 2026 · 3 min read
The short answer
It depends on the nature of the workers' compensation. There are really three different paths, depending on your injury and whether you're going back to work.
If the payments are set for life, some lenders will use them as income. If you're only off for a couple of months and going back, a return to work letter can sometimes get it over the line. The bit in the middle, not quite permanent and not quite short term, is the hard one.
The two minute version, filmed from the driver's seat. The rest of this page is the detail underneath it.
Path one: payments that are set for life
If you've hurt yourself at work and there's no chance of going back, the payments may be made on the basis that there's no ongoing reassessment of your injury, and they're more or less indefinite. That's the type of workers' comp some banks will accept as income for a home loan.
The reason is simple. When a bank decides whether it can use income, it's asking whether you'll keep getting it for the life of the loan, potentially 30 years. If the insurer is saying in writing that you'll get these payments for life, that's the assurance the bank is looking for.
Most lenders still won't use workers' comp income. A handful will, generally with a letter from the insurer showing the amount and that it's ongoing for the life of the loan, plus bank statements showing it landing. Some count all of it, and at least one counts only part.
Path two: you're going back to work
If you've hurt yourself and you're only off for a couple of months, sometimes we can use a return to work letter. That shows, from your employer or the insurer, the date you're due back and the income you'll be going back to.
Because the bank knows the comp is only temporary, the income you'll return to is sometimes something they can support. Only a few lenders have a clear path for this, and the paperwork matters: a return date, your salary on return, and your employer confirming your job is there for you.
Path three: the bit in the middle
Then there's the situation where it's not quite indefinite, but you're not going back soon either. Payments are being reassessed, there's no firm return date, and nobody can say what your income looks like in a year.
That's going to be a problem if you want a home loan right now, because the bank can't rely on comp income that might stop, and it can't rely on a job you haven't got a date to return to. Often the better plan is to get the return date locked in, or the claim settled, then apply.
The honest bit: it's all case by case
Workers' comp is one of the areas where lender policy is all over the place, and small details in your insurer's letter can decide it. What the letter says about how long payments run, and whether they're reassessed, matters more than the amount.
So if that's you, send it through and we'll run through your situation before you apply anywhere. Better to know which path you're on than collect declines.
On workers' comp and want to know where you stand?
A 30 minute call. We go through your claim, your insurer and employer letters, and which lenders are realistic for your path.
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What if I lose my job and can't make my mortgage repayments?Tell your bank as soon as you know. A hardship arrangement can reduce or pause repayments for a while, but interest keeps stacking up.
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