Can I Get Finance with Commission Income?
Yes, Australian lenders accept commission income, though they usually shade it or require a two-year track record to verify stability for serviceability assessments.
Is commission income acceptable?
Yes, commission income is acceptable to many Australian credit providers, but how it is assessed differs from a standard base PAYG salary. Because commission can fluctuate, lenders want clear evidence that this income stream is consistent and sustainable over time before including it in your serviceability calculation.
Typically, credit providers require a 12-to-24-month history of earning commission in the same role or industry. They will generally request your latest ATO Notice of Assessments, tax returns, and recent year-to-date pay slips. Many mainstream banks also shade commission income—often counting only 80% of it—to buffer against potential future drops in your earnings.
If you have recently changed employers within the same field, or if commission makes up the majority of your total remuneration package, policy flexibility varies significantly between institutions. Some non-bank or specialist lenders consider shorter track records, provided you can demonstrate strong, continuous performance in your sector.
Navigating different lender policies around variable income can be complex. A Lonix broker can compare lenders across the market and structure your loan application to highlight your true earning power effectively.
Related questions
- How do lenders calculate commission income for serviceability?
- Lenders usually average your commission earnings over the past two financial years, often applying an 80% shading factor to mitigate risk.
- What documents do I need to prove commission income?
- You will generally need recent pay slips showing year-to-date figures, alongside your individual tax returns and ATO Notice of Assessments for the last two years.
- Can I use commission income if I have been in my job for less than a year?
- Some flexible lenders may consider commission with under 12 months in a role if you have a proven track record in the exact same line of work.
- Does commission income affect my loan-to-value ratio (LVR)?
- Commission income impacts your borrowing power rather than your LVR, though lower accepted income can mean needing a larger deposit to avoid LMI.