Income Continuity Evidence in Lending Assessment
Canonical question
What evidence do lenders use to assess whether income will continue, and which signals cause income to be treated as temporary or conditional?
Jurisdiction: Australia
Domain: Credit assessment — continuity risk
Applies to: All income types where future continuation is uncertain or time-bound
Decision definition
Income can be genuine and current yet still excluded if lenders believe it may not continue. Continuity assessment tests whether income is:
- expected to continue
- contractually supported
- structurally reliable
- aligned with the borrower’s future plans and timing
Continuity is evaluated separately from:
- income amount
- income legality
- past history
How lenders assess continuity
Continuity evidence commonly includes:
- employment status and contract terms
- probation completion timing
- contract expiry and renewal likelihood
- industry stability and role demand
- documented plans affecting income (leave, relocation, business transition)
For self-employed income:
- continuity is inferred from consistent trading and sustainable profit patterns
For rental income:
- continuity relies on lease evidence and vacancy history risk
Common continuity failure points
Income is often treated as conditional or temporary where:
- contract ends soon
- probation not satisfied and policy is strict
- recent business income relies on one customer/project
- variable income is new or irregular
- foreign income depends on time-limited offshore placement
- income depends on arrangements that may change (e.g., trust distributions without stable pattern)
Related income recognition questions
- Income history requirements
- PAYG income stability
- Probation, contract, and casual income policy
- Unstable income decline conditions
- Foreign and expatriate income treatment
Structured borrower mapping
Applying this assessment logic
Continuity depends on timing, contract terms, and future plans — not just income level.
Structur helps you map the time dimension so you can see how continuity may be assessed before seeking credit assistance.
→ Map your situation in Structur
Canonical status: Foundational reference
Role in lending assessment: Determines whether income is treated as continuing or conditional
Next canonical question: Probation, contract, and casual income policy
