How much can I borrow based on my commission income?

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saibo
Posts: 9
Joined: Tue Mar 20, 2018 9:14 pm

How much can I borrow based on my commission income?

Postby saibo » Fri Jun 08, 2018 12:34 pm

Hi, I work in an in Eastern National Distributors for more than a year. I’ve been receiving commissions regularly for more than nine months, $3,000 on average per month. I think I’ll be able to apply for a home loan now because I’m earning consistently more, and I’ve saved up quite a deposit.

I wanted to know whether I can borrow using my commission income. Can somebody at this forum explain to me about this?

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Otto Dargan
Mortgage Specialist
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: How much can I borrow based on my commission income?

Postby Otto Dargan » Fri Jun 08, 2018 1:42 pm

Hi saibo. Welcome to the forums.

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. If you have been in the job for:
  • 3 months: Some of our lenders will use 80% of your overtime income.
  • 2 years: Some of our lenders will use 100% of your overtime income if it is consistent.
If you are in a very strong financial position and receive regular commission payments then you may be able to borrow up to 95% Loan to Value Ratio (LVR).
All major loan features are available such as interest only, fixed rate, line of credit, 100% offset, redraw, and extra repayments. Some lenders may even offer professional packages and basic loan discounts.

We understand that commission remuneration is a viable source of income. If you want to learn more about commission income home loans then you can have a look at our website or you can give us a call on 1300 889 743.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

saibo
Posts: 9
Joined: Tue Mar 20, 2018 9:14 pm

Re: How much can I borrow based on my commission income?

Postby saibo » Fri Jun 08, 2018 2:57 pm

Thanks for that. Can you tell me more what do I need to provide to them so I can get a commission home loan?

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Otto Dargan
Mortgage Specialist
Posts: 7021
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How much can I borrow based on my commission income?

Postby Otto Dargan » Fri Jun 08, 2018 3:55 pm

Hi saibo,

Most lenders may require you to provide your two most recent payslips showing your Year To Date (YTD) income.

The lender will then extrapolate this to calculate your annual income. Your YTD income must cover a period of at least three months to be acceptable on its own.

If your payslips do not show a year to date income then you may have to provide additional documents. These may include:
  • 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 at least three months.
It should be noted that all lenders are not so lenient. As a result, they may require the following:
  • Tax returns and notices of assessment for two years. The lender will then average the income of the two years.
  • A letter from your employer confirming that you receive regular commission income.
If you want to discuss which lenders take all of your commission income for a home loan directly with one of our mortgage brokers then you can give us a call on 1300 889 743 or enquire online.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

saibo
Posts: 9
Joined: Tue Mar 20, 2018 9:14 pm

Re: How much can I borrow based on my commission income?

Postby saibo » Fri Jun 08, 2018 5:16 pm

Thanks for helping me. I’m thinking of giving you a call by the end of the coming week to discuss my personal situation. Cheers :)


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