Can I Get Finance with Bonus Income?

Yes, you can generally include bonus income in your finance application, but Australian lenders assess it differently from your standard base salary. Because bonuses fluctuate, credit teams apply specific shading policies to manage risk. Typically, lenders require evidence that the bonus is regular and ongoing, usually asking for two years of payment history via your group certificates or ATO notices of assessment.

When assessing variable earnings, most banks will shade the bonus amount, meaning they may only accept 50% to 80% of the average bonus received over the past two financial years. Some lenders are more generous if the bonus is explicitly detailed in your employment contract, while others calculate an average of the last two years and take the lower figure to test your serviceability.

Having bonus income properly factored in can significantly boost your borrowing capacity, potentially helping you achieve a lower LVR or avoid Lender's Mortgage Insurance (LMI). However, if you have recently changed employers or received a one-off performance payout, some credit providers may exclude the bonus entirely from their calculations.

Navigating different bank policies on variable income can be complex. A Lonix broker can compare lenders across Australia and structure the loan to ensure your bonus income is presented in the most favourable light.