Commission & Bonus Mortgages

Can You Get a Mortgage Using Commission or Bonus Income?

Yes. Many mortgage lenders will consider commission, bonus and overtime income when assessing a mortgage application. While your basic salary often forms the foundation of affordability calculations, additional earnings can also be used to increase the amount you may be able to borrow.

The key consideration for lenders is whether your income is consistent and sustainable. Regular commission payments, annual bonuses and ongoing overtime are generally viewed more favourably than irregular or unpredictable income.

Different lenders assess variable income in different ways. Some will use 100% of your commission or bonus income, while others may only use a percentage or apply an average over several years. This can have a significant impact on affordability, making lender selection particularly important for applicants with complex income structures.

Whether you're a salesperson earning commission, a professional receiving annual bonuses or someone who relies on overtime payments, there are lenders who understand how to assess your income fairly.

How Much Commission Income Will Lenders Use?

There is no universal approach to commission income. Some lenders will use 100% of your commission earnings, while others may only use a proportion when calculating affordability.

Common lender approaches include:

• Using 50% to 100% of commission income
• Averaging earnings over the last two or three years
• Reviewing year-to-date commission levels
• Taking account of future earning potential in some circumstances

The amount ultimately used will depend on how consistent your earnings have been and how large the commission element is compared with your basic salary.

Applicants with a strong track record of earning commission often have access to a wider range of lenders. Even where commission makes up a significant proportion of your income, there are lenders who specialise in assessing these applications and can often offer more favourable affordability calculations.

How Much Can I Borrow?

The amount you can borrow will depend on a combination of your basic salary, variable income and the lender's affordability criteria.

Lenders typically take into account:

• Basic salary
• Commission income
• Bonus payments
• Overtime earnings
• Existing financial commitments
• Credit history
• Deposit size

Some lenders may offer borrowing of four to five and a half times your annual income, while others may provide enhanced affordability assessments for applicants with strong and consistent earnings.

Because mortgage lenders treat commission and bonus income differently, borrowing capacity can vary significantly across the market. In some cases, the right lender could offer substantially more borrowing potential than another lender assessing the same income. Working with a whole-of-market broker like MFB will offer the best chance to find the right mortgage deal for your circumstances. 

What Documents Will I Need?

To assess commission or bonus income, lenders typically require evidence that demonstrates both the value and consistency of your earnings.

Commonly requested documents include:

• Last three months' payslips
• Latest P60
• Employment contract
• Bonus confirmation letters
• Commission statements
• Bank statements
• Proof of identity
• Proof of address

Where commission or bonus income forms a large proportion of overall earnings, lenders may request additional evidence from your employer confirming your pay structure or future earnings expectations.

Providing clear and accurate documentation from the outset can help speed up the application process and reduce the likelihood of further lender queries. We will provide full guidance on what you need to provide when you work with us.