Bonus and Commission Income: Do Australian Lenders Count It Toward Your Loan?

Key Takeaways

•        Most lenders will count bonus and commission income, but rarely all of it.

•        They usually want a track record, often around two years, and shade the amount.

•        One-off or irregular bonuses are often left out of the assessment entirely.

•        Lender policies vary widely, so the right lender can count much more of your income.

If a chunk of your pay comes from bonuses, commissions or other incentives, you may be wondering whether a lender will actually count it when you apply for a home loan. It is a good question, because how your variable income is treated can make a big difference to how much you can borrow. The short answer is that most lenders will count it, but usually not all of it, and usually only if you can show it is regular.

This article explains how Australian lenders assess bonus and commission income in 2026, what you will need to prove it, and why the lender you choose matters so much. It is general information, not financial or credit advice. If your income includes variable pay, we are always happy to help you work out how much of it can count.

Variable income takes a bit more care to present well, and that is something we do all the time. If you would like to see how we help with variable income, we are here for you, with no cost and no pressure.

The Short Answer: Usually Yes, but Rarely in Full

Let us start with the headline, then explain the reasoning.

Most lenders will include bonus and commission income when working out how much you can borrow, provided it is regular and likely to continue. But they apply some of their strictest rules to this kind of income, because unlike your base salary, which lands every pay cycle, bonuses and commissions rise and fall with performance and business conditions. To protect against that variability, lenders usually count only a portion of it, want to see a history of it, and may leave out anything that looks like a one-off. So yes, it counts, but how much of it counts is the real question.

How Lenders Assess Variable Income

Lenders generally apply three filters to bonus and commission income:

•        A track record. Most want to see the income over time, commonly around two years, evidenced in your payslips, tax returns or income statements, to be confident it is ongoing.

•        An average, not the peak. Rather than use your best year, lenders typically average the income over the period, and often use the lower of your most recent year or the two-year average.

•        A discount, or shading. To allow for the ups and downs, lenders usually count only a portion of the averaged figure, often around 80%, though it can range from roughly 50% to the full amount depending on the lender.

One-off or irregular bonuses that are unlikely to repeat are often excluded altogether.

Bonus vs Commission: Any Difference?

The two are related but not identical in how lenders see them.

Commission income, especially where it is a core, regular part of your role, such as in many sales positions, is often treated as a genuine part of your earnings, provided you can show a consistent history of it. A discretionary annual bonus, on the other hand, tends to be viewed more cautiously, because it can change or disappear from year to year. Both are usually averaged and shaded, and both generally need a track record, but a steady, central commission may be looked on a little more favourably by some lenders than an uncertain bonus. What matters most in each case is consistency and evidence that it will continue.

What You'll Need to Prove It

To have your bonus or commission counted, be ready to document it clearly:

•        Recent payslips. Ideally showing the year-to-date bonus or commission, not just your base pay.

•        Income statements or PAYG summaries. Usually for the last one or two years, showing the income over time.

•        Tax returns. Often requested to confirm your total earnings across recent years.

•        Your employment contract. To show that bonuses or commissions are a formal part of your remuneration.

•        An employer letter. Sometimes asked for, confirming the income is regular and likely to continue.

The clearer and more consistent your evidence, the more confident a lender can be, and the more of your income they are likely to count.

Why the Right Lender Makes Such a Difference

This is where the choice of lender becomes genuinely important.

Because every lender sets its own policy, the same bonus or commission can be counted very differently from one to the next. One lender might include most of it, while another counts only a conservative portion, and a third might not count it at all. For someone with a large variable component, that can mean a difference of tens of thousands of dollars, sometimes more, in borrowing power, on identical income. None of these policies are published in one place, which is exactly where a broker helps: matching your income profile to the lenders most likely to recognise it, so you are not underselling what you actually earn.

A Real-World Example: Getting Commission Counted

Here is how lender choice can change the outcome. Treat it as a guide only.

Jordan worked in sales, with a base salary plus a significant, steady commission that made up a large share of his pay. When he approached his own bank, they counted only a small portion of the commission, and the loan they offered fell well short of what he needed.

Frustrated, he spoke to a broker, who recognised that Jordan's commission was consistent and well documented over two years. The broker matched him to a lender whose policy treated that kind of income more generously, counting much more of it. With the same payslips and the same job, Jordan's borrowing power rose considerably, and he was able to buy the home he wanted.

Where to Read More

The Australian Taxation Office sets out the types of employment income you declare, which includes bonuses and commissions and forms the basis of what lenders assess.

Frequently Asked Questions (FAQs)

Do lenders count bonus and commission income?

Yes, most lenders will count it when working out your borrowing power, as long as it is regular and likely to continue. However, they apply stricter rules to this kind of income than to your base salary, because it can vary from year to year. That usually means they want to see a history of it, use an averaged figure rather than your best year, and count only a portion. How much they count depends heavily on the lender and how well you can document the income.

How much of my bonus or commission will a lender count?

It varies by lender. Many count around 80% of an averaged figure, but it can range from roughly 50% up to the full amount, and some lenders will not count certain income at all. Lenders shade variable income to allow for the fact that it can rise and fall. Because the range is so wide, the same income can produce quite different borrowing outcomes at different lenders, which is why lender choice matters so much here.

How long do I need to have received a bonus for it to count?

Commonly around two years, though it depends on the lender and the type of income. Lenders want to be confident the income is ongoing rather than a one-off, so a consistent history over a couple of years, shown in your payslips, income statements and tax returns, gives them that comfort. Some lenders may accept a shorter history for certain income types, while a genuinely one-off bonus is often excluded regardless of history.

What documents prove bonus or commission income?

Typically recent payslips showing the year-to-date amount, income statements or PAYG summaries for the last one or two years, and often your tax returns. Your employment contract can help by showing that bonuses or commissions are a formal part of your pay, and some lenders ask for an employer letter confirming the income is regular and likely to continue. The clearer and more consistent your evidence, the more of the income a lender is likely to count.

Is commission treated differently from a bonus?

Somewhat. Commission that is a core, regular part of your role, as in many sales jobs, is often treated as a genuine part of your earnings if you can show a steady history. A discretionary annual bonus tends to be viewed more cautiously, because it can change or disappear year to year. Both are usually averaged and shaded and both generally need a track record, but a consistent commission may be recognised a little more readily by some lenders.

Why do different lenders give me different borrowing amounts?

Because each lender sets its own policy on how it treats variable income like bonuses and commissions. One might count most of it, another only a conservative portion, and a third none at all, which can move your borrowing power by tens of thousands of dollars on the very same income. These policies are not published in one place. A broker can match your income profile to the lenders most likely to recognise it, so you are not underselling what you earn.

The Bottom Line

If your pay includes bonuses or commissions, the good news is that most lenders will count it toward your loan. The catch is that they rarely count all of it: they usually want a track record of around two years, average the income rather than use your best year, and shade the figure to allow for its ups and downs, while often excluding anything that looks like a one-off. Clear, consistent documentation is what helps a lender count as much of it as possible.

The biggest factor, though, is the lender you choose, because policies vary so widely that the same income can produce very different results. That is where a broker earns their keep, matching your income to the lenders most likely to recognise it. If a good part of your pay is variable, we would love to help you present it well and find the lender that counts it best, with no cost and no pressure.