Overtime / Commission / Bonus
Overtime
Generally home loan lenders don’t consider overtime part of regular income
If there is evidence regarding regular overtime, lenders may consider using up to 80% of the overtime
If overtime is a condition of employment, the lender may consider a higher percentage of the overtime
Generally essential and frontline workers can receive 100% of overtime for loan servicing calculations
Commission
Commission based income is going to fluctuate, lenders prefer reliable and predictable sources of income
Demonstrating consistency of commission income, whether it is your total income or your part income
Each home loan lender has a different policy regarding what percentage of commission is acceptable
Bonus
Bonuses can be paid based on performance, irregular payments and one-off’s may not be considered
Assessing if the bonus is part of regular income:
- will depend on being paid regular
- ongoing bonuses with a 2 year history to prove this is the case
- In the employment contract
One-off bonuses cannot be considered as additional income and is unlikely to be counted by most lenders
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