Can I use bonus or commission income for a home loan?

How variable income is shaded

• 80% of a two-year average is the most common treatment.
• Lower of the last two years is used where income is falling — a strong year does not rescue a weak one.
• 100% of commission is available at some lenders where commission is a contracted, ongoing part of the role.
• One-off or discretionary bonuses may be excluded entirely, particularly if the employer letter calls them discretionary.

Evidence that makes the difference

The single most useful document is an employer letter that describes the bonus or commission as an ongoing, structured part of your remuneration rather than a discretionary payment — and confirms the amounts paid in the last two years. Assessors read that language literally, and the same income can be counted at 100% or 0% depending on how it is described.

Timing your application

• Apply after your bonus is paid and appears in your YTD figure, not before.
• If income is trending up, a lender using the most recent 12 months suits you better than one averaging two years.
• If income is trending down, expect the lower year to be used, and plan the purchase price around that.
• Keep the bonus in your savings — a deposit that has grown from bonuses supports the story you are telling.

How XLOANS helps with this scenario

We check the policy before an application is lodged, not after. That means confirming with the lender's own guidelines that your situation fits — tenure, income treatment, credit file, deposit source — so the enquiry on your file is one that has a genuine chance of approval.

Our service costs you $0. We are paid an ongoing commission by the lender for as long as your loan stays with them, which is why reviewing your loan later matters to us as much as settling it now.