Short answer: most lenders will count some of it, but rarely all of it, and they don't agree on how much. Base salary is easy. Bonuses, commission and overtime usually need a track record before a lender will rely on them. Shares and RSUs are the hardest, and plenty of lenders leave them out completely.

We see this most with clients who work in the offices around North Sydney, Chatswood and the city. Someone on a decent base with a big annual bonus and a parcel of shares vesting each quarter can find one bank assesses them on the base alone and another counts most of the package. On a Sydney loan size that gap can decide whether the purchase works.

Why lenders treat variable pay differently

A lender is trying to work out what you'll earn over the next few years, not what you earned in your best one. Base salary is in your contract. A bonus depends on the company having a good year, commission depends on sales, and share prices move. So lenders want evidence the income has been there for a while, and many also discount it before it goes into the servicing calculation.

None of that means variable income is treated as suspect. It just means the paperwork has to do more work.

Bonuses

A common approach is to look at the last two years of bonus payments. Some lenders average the two, some take the lower year, and some will use the most recent year if it's backed by a letter from your employer. A smaller number will look at a single year in some cases, often with a reduced share counted.

Things that help your case:

  • Payslips or bank statements showing the bonus actually landed in your account.
  • Your last two income statements or tax returns, so the lender can see it year on year.
  • An employer letter confirming the bonus structure, especially if it's part of your contract rather than purely discretionary.

A sign-on bonus is usually treated as a one-off and not counted as ongoing income. If you've just changed jobs, tell us early, because it changes which lenders are worth approaching.

Commission

Commission is assessed much like a bonus, with the same preference for a two year history in the same role or industry. If you're paid mostly on commission, some lenders may assess you more like a self-employed borrower and ask for tax returns rather than payslips. If you're on a base plus a smaller commission component, the base usually carries the application and the commission adds to it.

If your commission has dropped in the latest year, expect lenders to lean towards the lower figure. If it has jumped, expect them to want to see that it's holding.

Overtime, shift allowances and penalty rates

For nurses, police, paramedics and other shift workers, overtime and penalty rates can be a big slice of take-home pay. Some lenders count regular overtime for essential services workers more generously than for other jobs, and some need less history if it's clearly a normal part of the role. Our guide to home loans for first responders goes into this in more detail.

RSUs, employee shares and options

This is where lenders differ the most. Restricted stock units, employee share plans and options are common in tech, finance and large listed companies, and for some people they're a meaningful part of what they earn. Lenders tend to fall into three camps:

  • Not counted as income at all. The shares may still count as an asset once they've vested and sit in your name, but they won't help your borrowing capacity.
  • Counted with a history. Some lenders will include vested shares as income where there's a clear record of vesting over a couple of years, usually with a discount for share price movement.
  • Counted once sold. A few will treat the sale proceeds as a deposit or savings, but not as income.

Unvested shares are almost never counted. If you're relying on an upcoming vesting to fund part of the deposit, be careful with timing, because the share price on the day might not match what you've pencilled in.

The paperwork matters here more than anywhere else: your grant letters or plan rules, vesting schedules, and statements from the share plan provider showing past vests. Pull those together before you apply rather than while the lender is waiting.

What about salary packaging and allowances?

Salary packaging, car allowances, and things like a living-away allowance are each treated in their own way. Packaged amounts can sometimes be grossed up, and fixed allowances in your contract are often counted. Irregular reimbursements usually aren't. These are small details, but on a big loan they add up.

How to give yourself the best shot

  • Don't assume the bank you've been with for years will count your package the way you'd hope. Some are fairly conservative on variable pay.
  • Get two years of evidence together: income statements, payslips that show the bonus or commission, and any employer letters.
  • Avoid changing jobs right before you apply if you can. A new role can reset the clock on bonus and commission history.
  • Get a pre-approval before you bid, so you know which parts of your income the lender actually accepted.
  • Work out your borrowing range on base salary alone as well as on the full package. If the purchase only works on the full package, you'll want a lender that is comfortable with it, and a plan B.

For a rough starting point, our how much can I borrow guide explains how servicing works. Just keep in mind that a calculator can't tell you which parts of your pay a particular lender will accept.

Talk to us before you apply

We compare 60+ lenders, and the way each one treats bonuses, commission and shares is one of the first things we look at for clients with a package like this. Send us your last couple of income statements and a recent payslip and we'll tell you plainly what's likely to be counted and where. Get in touch or call 1300 001 755. We work with professionals right across the North Shore, including North Sydney and Chatswood, and the Northern Beaches.

Frequently asked questions

Do banks count bonus income for a home loan?

Most lenders will count some bonus income, usually with a two-year history of it being paid. Some average the two years, some use the lower year, and some accept the latest year with an employer letter. Many also count only part of it.

Can RSUs be used as income for a home loan in Australia?

Some lenders will count vested shares as income where there's a history of regular vesting, usually at a discount. Many don't count them as income at all, though vested shares can still count as an asset. Unvested shares are rarely counted.

How is commission income assessed for a mortgage?

Similarly to bonuses: lenders usually want around two years of history in the same role or industry. If most of your income is commission, some lenders may assess you on tax returns, like a self-employed borrower.

Is a sign-on bonus counted as income?

Usually not. A sign-on bonus is a one-off payment, so lenders generally treat it as savings rather than ongoing income.

Will changing jobs affect how my bonus is assessed?

It can. Moving to a new employer can reset the history lenders look for on bonus and commission income, even if your base salary is higher. Talk to a broker before you resign if a purchase is coming up.

Do all lenders treat overtime the same way?

No. Some count regular overtime more generously, particularly for essential services workers like nurses and police, and the history they ask for varies.

General information only. It does not take your objectives, financial situation or needs into account, and it is not credit or financial advice. Lender policy, rates and eligibility change regularly and vary between lenders — talk to us about your own circumstances before acting on anything here.