Key takeaways
- Most lenders count overtime and bonuses — but the percentage they count varies widely.
- Variable income is usually averaged over one to two years and may be discounted.
- Consistency and industry stability increase how much is counted.
- The right lender can count far more of your variable income than the wrong one.
For a lot of workers — nurses, police, tradies, sales staff, emergency services — base salary is only part of the story. Overtime, bonuses, shift allowances and commissions can make up a huge share of real income. The frustrating part: lenders treat this income wildly differently. Get it assessed by the right one and your borrowing power can jump.
How variable income is assessed
Because overtime and bonuses can fluctuate, lenders apply caution — typically counting a percentage (often around 80%) and averaging over one to two years. They look for consistency: a steady history is counted more readily than a one-off. Year-to-date figures on your payslips do a lot of the work here.
Where lender choice changes everything
Some lenders count essential-services overtime at close to full value; others discount all overtime heavily. The same applies to bonuses and commissions. On a big variable-income component, that difference can swing your borrowing power by a large margin — from the identical payslips.
Illustrative example. A shift worker whose overtime and allowances add, say, $20,000 to a base salary might have one lender count almost all of it and another count little — a gap that can move borrowing capacity meaningfully. The right figures depend on your role, industry and history.
Keep a clear record: payslips showing year-to-date overtime and bonuses, and ideally one to two years of history. Staying in the same role or industry strengthens the case, because it shows the income is durable, not a blip. It all feeds your serviceability.
Getting the most from it
The play is simple: document the income well, then apply to the lender whose policy treats it most generously. For anyone whose pay leans heavily on overtime, bonuses or commissions, that lender choice is one of the highest-impact decisions in the whole process — and a core reason to use a broker over a single bank.
Broker Insight. For shift workers and emergency-services staff especially, the lender you choose can swing your borrowing power by tens of thousands — because some count nearly all your overtime and others barely half.
Get every dollar of your income recognised
Overtime, bonuses, allowances, commission — we’ll match you to the lender that counts the most, and show you what it does to your borrowing power. Free, no obligation.
Book your free game plan callFrequently asked questions
Can I use overtime income for a home loan?
Yes, most lenders will count overtime income — but how much they count varies. Many use a percentage (often around 80%) of your regular overtime, and they usually want to see it’s consistent, evidenced by year-to-date figures and sometimes a history over one to two years. Essential-services and shift workers with reliable overtime are often assessed more generously by certain lenders.
How do lenders treat bonus and commission income?
Bonuses and commissions are typically averaged over one to two years and may be partially discounted, since they can vary year to year. Consistency is key — a steady two-year history of bonuses is counted more readily than a single recent one. As with overtime, some lenders are far more generous than others, which directly affects your borrowing power.
How can I maximise how much of my variable income counts?
Provide a clear history (payslips with year-to-date figures, and one to two years of evidence), stay in the same role or industry, and choose a lender whose policy is generous on your income type. Shift allowances, overtime and bonuses in stable industries are often counted more fully by the right lender — so matching your profile to the lender is where the biggest gains come from.
This guide is general information only and does not take your personal circumstances into account. It is not financial or credit advice. Government schemes, lender policies, rates and tax rules change over time and eligibility criteria apply. Speak with us for advice tailored to your situation.