The Canonical Lending Questions
Beneath every Australian lending decision is a recurring set of credit verification queries applied consistently by underwriters. Explore our exhaustive 5-Pillar credit analysis model below.
"How does the lender treat different parts of my compensation packet?"
Base salary is taken at 100%, but cash bonuses, shares vesting, allowances, commissions, and overtime are often slashed by 20% to 50% or completely ignored unless you have a 2-year solid history.
Lenders look for consistency and risk-mitigated permanence. Standard calculators use the lower of current YTD projected commission or the averages of the last 2 tax returns. Some major banks will completely discount allowance streams (like car allowances or site bonuses) from borrowing calculations if they deem them non-essential to your basic role.
APRA guidelines demand that lenders verify the reliable nature of all servicing income. This mandates a conservative margin (shading) on fluctuating, variable, or conditional payments to cushion against macro shocks.
Credit criteria systems are hardcoded to flag fluctuating variable lines. If your commissions dropped by more than 15% in year 2 compared to year 1, underwriters must adopt the lower figure alone and cannot calculate an average.
Consolidate two complete years of PAYG group certificates, direct employment contracts detailing bonus structures, and 3 consecutive months of bank statements showing deposits. If you have changed jobs within the same industry, locate a vendor-agnostic lender that waives probationary exclusions.
Obtain a signed executive sign-off letter from your corporate employer on letterhead certifying that overtime or commission payments are standard, ongoing, and a fundamental covenant of your employment agreement.
Explore the completed criteria page on Model Mortgages or check your exact status under premium bank credit guidelines using our online companion diagnostic tool.
Select premium lenders recognize 100% of cash bonuses and commission income with only a 12-month track record, and some will project annual allowances based on your last 3 consecutive pay slips. This can instantly unlock over $150,000 in borrowing capacity.