Bonus income can count, but there is no universal formula.
A lender may be willing to include some bonus, commission or STI income when assessing a home-loan application. Whether it is included, and how much is used, depends on the lender’s current credit policy and the strength of the evidence.
One lender might assess the income conservatively. Another may use a different averaging method or require a different history. A third may exclude it for your particular situation. That is why a calculator using only your base salary can miss part of the picture, and why a headline borrowing-power number should never be treated as an approval.
Variable income is not as predictable as salary.
Base salary is generally straightforward to verify. Bonus and STI payments can change with personal performance, company performance, role changes and the structure of an employer’s incentive plan.
Has the income been paid more than once, and does the recent pattern support its continuation?
Can the amount and payment history be clearly supported by payslips, income statements or employer documents?
How does the selected lender currently treat that type of variable income?
Has your role, employer, bonus structure or industry position recently changed?
Make the income easy to understand.
The exact documents depend on the lender and your employment situation. A useful starting file may include:
- Recent payslips showing base salary and any year-to-date incentive income
- Income statements or other evidence showing prior bonus payments
- Your employment contract or remuneration letter
- Bonus, commission or STI statements where available
- A simple explanation of any change in role, employer or incentive structure
The aim is not to overwhelm the application with paperwork. It is to give the lender a clear, consistent income story.
The same income can produce different assessments.
The two bonus payments average $35,000. Depending on the lender and the complete application, the assessed income might be based on base salary only, base salary plus a reduced portion of supported bonus income, or another policy approach.
The lesson is lender selection, not a fixed percentage.Illustrative only. This is not an estimate of borrowing capacity and does not describe every lender’s policy.
Recognised income is only one ingredient.
Even when variable income is accepted, borrowing capacity can still be affected by credit-card limits, HELP debt, personal or vehicle loans, dependants, living expenses, the requested loan term, interest-rate buffers and the lender’s other assessment settings.
The property, deposit and loan purpose matter too. A useful assessment joins these pieces together rather than multiplying income by a rule of thumb.
A better order of operations.
- 01Build the evidence file.
Collect the documents that show what was paid and why.
- 02Map the full position.
Include debts, expenses, deposit, target property and future plans.
- 03Compare policy before product.
Confirm how suitable lenders may treat the income before focusing on rate and features.
- 04Then choose the application path.
Avoid unnecessary applications while the evidence or lender fit is unclear.
Bonus and STI income FAQs.
Can a bank count my bonus as income?
Potentially. It depends on the lender’s current policy, the history and consistency of the bonus, the evidence available and the rest of the application.
How much bonus history do I need?
There is no universal rule. Some lenders may seek a longer history while others may consider a shorter, well-supported record. The right evidence and policy need to be checked for your situation.
Will every lender use the same amount?
No. A lender may exclude variable income, use a reduced portion or assess it using an average or another policy method. Current policy should be confirmed before applying.
What if I recently changed jobs?
A change in role, employer, industry or incentive structure can affect how useful the previous history is. The details should be reviewed before selecting a lender or making an application.