How to make your commission earnings count!

Some of the highest paid people in Australia are commission only salespeople!

Despite this, it can be difficult to get home loan approval because most banks won’t use your full income – we know lenders that will!

Will the bank accept all of my commissions?

Some lenders will only use 50% of your commission income but there are others that will use 100% of your commissions.

It all comes down to your work history and how long you’ve been earning commission income.

  • You can borrow up to 95% of the property value or up to 100% using a guarantor.
  • 3 months in your job: Some of our lenders will use 80% of your commission income.
  • 6 months in your job: One of our lenders will use 100% of your overtime income if it is consistent.

Most lenders using 100% of your commission income require you to be employed for 2 years in your job.

Please fill in our free assessment form to talk to a mortgage broker who specialises in commission income home loans.


What do lenders think?

Australia has many successful commission income salesmen who have trouble applying for a home loan because their bank won’t consider their income when assessing serviceability or their ability to make the repayments without hardship.

Banks are cautious of relying on commission income because commission income is not guaranteed and can fluctuate.

Some months, your income can skyrocket but in other months your turnaround may reduce significantly for seasonal reasons.

Other times, it could simply be because you took a holiday!

Lenders are more comfortable with those who earn a regular monthly salary.

However, there are lenders that may still allow you to borrow.

Call us on 1300 889 743 or fill in our free assessment form to speak to one of our expert mortgage brokers who can assist you in getting a mortgage.


Commission income is reliable!

In our experience, salespeople tend to have very stable incomes and can support a loan without posing a higher risk to themselves or the lender.

This is because of a few factors that many lenders don’t take into account, such as:

  • You can always work harder to earn more money.
  • Nothing motivates you to succeed more than the need to meet financial commitments, such as a mortgage.
  • Salesmen cost a company very little to keep employed in comparison to salaried employees so they’re less likely to be made redundant during economic downturns.
  • You know how stable your income is and you wouldn’t apply for a loan unless you were confident that you can meet the repayments.

Unlike most banks, we understand that commission remuneration is a viable source of income.

Contact us today on 1300 889 743 or fill in our free assessment form.

Our specialist mortgage brokers know how to get you approved!


Which lenders can help?

We have relationships with several banks and lenders who would gladly take your commission income into account when assessing your mortgage for approval.

With the huge variety and number of contacts that we have there is sure to be a lender that will suit your home loan needs.

Please fill in our free assessment form or contact us on 1300 889 743 for further details.

We can help you apply for a home loan with the use of your full commission income.


How do lenders assess your commission income?

Lenders assess commission income in different ways and require different forms of supporting documents as evidence.

Most lenders want to see a two-year track record so they can be sure your income is stable.

This isn’t a fair way to assess your mortgage application because many salespeople can choose to work harder to earn more or have had their income increase as they gain more experience.

However, not all lenders take this into account.

Complete our free assessment form to find out how you can make your commission income count or contact us today on 1300 889 743 to discuss your situation with a specialist mortgage broker.


What do you need to provide?

Most lenders require your two most recent payslips.

This must show your Year To Date (YTD) income which the bank can then extrapolate to calculate your annual income.

Your YTD income must cover a period of at least 3 months to be acceptable on its own.

If your payslip does not show a year to date income then you may have to provide additional documents such as:

  • Your most recent group certificate or tax return.
  • A letter from your employer.
  • Other evidence of your sales targets and sales results covering a period of no less than 3 months.

However, most lenders are’t so flexible and may require the following:

  • Two years tax returns and notices of assessment (the lender will average the two years income).
  • A letter from your employer confirming that you receive regular commission income.

If you think that you may have difficulty providing this documentation, there is no need to worry!

We know lenders that can approve your home loan with as little as 3 months evidence of your commission income!

Speak to our team today on 1300 889 743 or fill in our free assessment form.


What is commission income?

Commission remuneration is a type of income received from your employer for services rendered or products sold.

It’ss based on your sales results rather than the number of hours you’ve worked.

Many salesmen and women receive part of their pay as a base salary and then commission in addition to this.


Who is this loan for?

This loan is for commission based employees who have a regular and consistent flow of commission income which can be supported by evidence such as payslips and confirmed by their employer.

Some of the common commission earners include salesmen, sales agents, real estate agents, car salesmen, B2B salesmen and mortgage brokers.


Which loan types are available?

All loan types including professional packages, basic loans, lines of credit and fixed rates are available.


How much can I borrow?

You can borrow up to 90% of the property value and possibly 95% if you’re in a very strong financial position and receive regular commission payments.


What can you use the loan for?

Home or domestic use, investing, purchases, refinances and construction are all acceptable loan purposes.


Discounts

Professional package and basic loan discounts are available.


Loan features

All loan features are available including interest only, fixed rate, line of credit, 100% offset, redraw and extra repayments.


Apply for a commission income home loan now!

If you’re working a commissioned job, we can provide you with a large selection of lenders and banks that can cater to your specific and particular needs.

Fill in our free assessment form or contact us on 1300 889 743.

Our expert mortgage brokers will assist you in getting a mortgage regardless of your income source!

  • Lachlan

    I’m an automobile salesman and receive a lot of income through commission, however they’re not consistent. How can I present my application to the bank so that they can assess my all the commission income?

  • Hi Lachlan,

    It’s a common practice to accept only 50% of the commission income with many lenders, however they assess such income in differing ways and need different forms of supporting documents as evidence.

    If you receive regular commission payments, then there’s high chances that some lenders will take this into account. It’s good to talk to a mortgage broker who specialises in commission income home loans.

  • maine

    Want to buy a $420k property at 95% LVR + LMI – I have a $20k deposit and I earn $40k base income a year. Commission income is $35k and is consistent. I’ve been employed for over 5 years with my employed but it’s only been 10 months on this pay structure. Can you help?

  • Hello maine,

    Can you provide additional payslips to show consistent commission paid? Since 95% + LMI is a high lend and you have a low deposit, what about using a guarantor or getting a gifted deposit?

  • maine

    Yes, I can provide additional payslips but no guarantor and no gifted deposit as well.

  • Please call 1300 889 743 to discuss all this with an expert mortgage broker or simply enquire online and we will contact you instead:
    https://www.homeloanexperts.com.au/free-quote/

  • l0gan5

    Is it necessary to provide payslips that have my YTD income on them?

  • Hey l0gan5,

    It’s not necessary to provide payslips that show YTD income. If your payslip does not show a year to date income then you may have to provide additional documents such as your most recent group certificate or tax return, a letter from your employer or other evidence of your sales targets and sales results covering a period of no less than 3 months.

  • Levi

    Can you work out my borrowing power for me? I can provide all details needed, just tell me what to send.

  • Hi Levi,
    You can actually test it yourself by trying the “How much can I borrow?” calculator. Details regarding how to fill in the calculator as well as additional info is on the page itself. Please have a crack at it and enquire through the page if you’d like to discuss it with an expert mortgage broker:
    https://www.homeloanexperts.com.au/how-much-can-i-borrow/

  • Boogie

    I am a foreign citizen living abroad and I earn 80% of my income in commission. I earn around AUD $50k base income with rest being commission so can you help me with a foreign investor loan?

  • Yes, we can help but please note that you may need to be borrowing at a very low LVR. The issues we can see right now are that this is a foreign investment loan and a majority of your income is commission. We have 2 lenders in mind that may be able to help so please call us on our overseas number +61 2 9194 1700 to discuss everything in detail with an expert foreign investment mortgage broker.

  • Kirkpatrick

    I’m planning to get a mortgage. I’m a car salesman and my annual income is divided into annual salary and commission. Will the banks accept my whole commission income or will they consider only my salary?

  • Hi Kirkpatrick,
    Usually, lenders consider your commission income but most of them take only 80% of the commission income while calculating your borrowing power. However, there are a few banks who take all of your commission income. Also, lenders have their own way of calculating the income; some take the average of 2 years, while some take annualised commission. Please call us on 1300 889 743 and we can help you apply for a home loan with the use of your full commission income.

  • Charles

    I have a permanent insurance agent role at a Melbourne-based company and my employment contract includes base pay and commission. I was wondering whether my lenders take my commission income into account when assessing my home loan application?

  • Hi Charles,
    Some lenders will only use 50% of your commission income but, luckily, there are others that will use 100% of your commissions. It all comes down to your work history and how long you’ve been earning commission income.
    Have you been in your job for at least 2 years? Some of our lenders will use 100% of your overtime income.
    If you’ve only been in your job for 3 months or less, the most lenders will only use 80% of the your commission income because you haven’t shown a consistent history.
    Call us on 1300 889 743 and talk with a mortgage broker who specialises in commission income home loans.