How lenders actually count your income.
Standard income calculators give you one number. Real borrowing capacity depends on which lender you go to, because lenders shade overtime, casual, contractor, bonus and parental-leave income at different percentages. Below are the matrices that move the answer by 5-30 per cent.
Two borrowers, identical income on paper, can be quoted 100,000 dollars apart in borrowing capacity by two different lenders. The reason is policy, not rate.
The matrices below cover the income types where lenders disagree most. Each matrix shades cells anonymously (Major bank A / B / Mid-tier 1 / etc.) during Phase 1 of this site; named lenders ship in Phase 2 alongside per-lender disclosure cards.
The numbers in each cell are illustrative of public lender policy as of May 2026; they are not a quote and do not constitute credit advice. The right lender for any specific borrower depends on the full picture (income, debts, credit history, property type, deposit, dependants). Use the borrowing power calculator to model scenarios, then talk to a broker who specialises in your income type.
Overtime income policy, by lender type.
How much of your regular overtime is counted toward serviceability. Lenders shade overtime to allow for variability; the shading percentage moves your borrowing capacity by 5-15%.
Standard overtime is regular overtime accrued with the same employer over a sustained period. Essential-services lenders treat the income at 100% on the basis that police, nurse, paramedic and ADF overtime is structurally reliable. Minimum tenure is the period the lender wants to see the overtime regularly accruing before they will count it.
| Lender | Tier | Standard overtime | Essential-services (police, nurse, ADF) | Minimum tenure |
|---|---|---|---|---|
| Major bank A | Big four | 100% | 6 months | |
| Major bank B | Big four | 100% | 6 months | |
| Major bank C | Big four | 100% | 12 months | |
| Major bank D | Big four | 100% | 6 months | |
| Mid-tier 1 | Mid-tier bank | 100% | 6 months | |
| Mid-tier 2 | Mid-tier bank | 100% | 6 months | |
| Customer-owned 1 | Customer-owned | 100% | 6 months | |
| Non-bank A | Non-bank | 100% | 3 months | |
| Digital lender | Digital lender | 100% | 6 months |
- On a $90,000 base + $20,000 overtime salary, the difference between 80% and 100% overtime shading is roughly $40,000-$70,000 of borrowing capacity, depending on other commitments.
- If you are an essential-services worker, name it explicitly in the application; some lenders apply the 100% treatment by occupation code.
- A lender that wants 12 months of overtime tenure may decline if you have only 6 months. Time the application around the tenure rule.
Last reviewed: 6 May 2026
Casual & contractor income policy, by lender type.
How casual income and contractor income are recognised. The 80%-vs-100% choice is often the difference between approval and decline for hospitality, retail, healthcare and trades workers.
Casual income shading affects everyone paid by the hour without guaranteed minimum hours. Contractor income (paid via ABN to a single primary payer) sits between PAYG and self-employed; some lenders treat it as PAYG-equivalent, others require self-employed documentation.
| Lender | Tier | Casual income shading | Min tenure (casual) | Contractor (1099-equiv) | Min tenure (contractor) |
|---|---|---|---|---|---|
| Major bank A | Big four | 12 months | 100% if PAYG-like | 12 months | |
| Major bank B | Big four | 12 months | 100% | 24 months | |
| Major bank C | Big four | 6 months (same employer) | 100% | 12 months | |
| Major bank D | Big four | 12 months | 100% if same payer | 12 months | |
| Mid-tier 1 | Mid-tier bank | 12 months | 100% | 12 months | |
| Mid-tier 2 | Mid-tier bank | 6 months | 100% | 12 months | |
| Customer-owned 1 | Customer-owned | 6 months | 100% | 6 months | |
| Non-bank A | Non-bank | 3 months | 100% | 6 months |
- For a $80,000-equivalent casual salary, 80% vs 100% shading shifts borrowing capacity by ~$60,000.
- Customer-owned banks and several non-banks treat casual income at 100% with shorter tenure requirements; useful for hospitality/retail FHBs.
- Contractor borrowers often need to choose: PAYG-style application (one payer, longer tenure) or self-employed application (BAS, two years of returns).
Last reviewed: 6 May 2026
Parental leave & return-to-work income policy, by lender type.
Whether your pre-leave income counts when you are on parental leave or returning to work. A common application failure point that lender choice solves.
A return-to-work letter from your employer (signed, with return date and hours/role) is the single most important document for a parental-leave application. Without it, most lenders default to current paid-leave income only.
| Lender | Tier | On paid parental leave | On unpaid leave with return date | Returning at reduced hours |
|---|---|---|---|---|
| Major bank A | Big four | Pre-leave income with return-to-work letter | Reduced income only | |
| Major bank B | Big four | Case by case | Reduced income only | |
| Major bank C | Big four | Pre-leave with letter, 12-month return horizon | Reduced income only | |
| Major bank D | Big four | Pre-leave with letter | Reduced income only | |
| Mid-tier 1 | Mid-tier bank | Pre-leave with letter | Pre-leave income up to 12 months post-return | |
| Customer-owned 1 | Customer-owned | Pre-leave with letter | Pre-leave income for 12 months | |
| Non-bank A | Non-bank | Pre-leave with letter | Pre-leave income for 12 months |
- If returning at reduced hours, pick a lender that recognises pre-leave income for 12 months post-return; the borrowing capacity gap can be 30-50% on a single-income application.
- Some lenders accept Centrelink Paid Parental Leave income as supplementary; others exclude it. This affects the borrowing capacity meaningfully on combined-income households.
Last reviewed: 6 May 2026
Bonus & commission income policy, by lender type.
How variable annual bonuses and sales commission feed into your borrowing capacity.
Bonus and commission income is shaded because it is variable. Most lenders use the lower of: the most recent year, or a two-year average, then apply the shading percentage.
| Lender | Tier | Annual bonus | Quarterly bonus | Sales commission | Min history |
|---|---|---|---|---|---|
| Major bank A | Big four | 80% | 80% | 2 years | |
| Major bank B | Big four | 80% | 80% | 2 years | |
| Major bank C | Big four | 80% | 80% (consistent) | 2 years | |
| Major bank D | Big four | 80% | 80% | 2 years | |
| Mid-tier 1 | Mid-tier bank | 100% | 100% | 2 years | |
| Customer-owned 1 | Customer-owned | 100% | 80-100% | 2 years | |
| Non-bank A | Non-bank | 100% | 100% | 1 year |
- A $60,000 bonus shaded at 80% is $48,000 of countable income; at 100% it is $60,000. On a serviceability calculator that is roughly $50,000 of borrowing capacity.
- Document your bonus history with payslips and PAYG summaries; gaps reduce the lender's confidence the income is regular.
Last reviewed: 6 May 2026
WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees, or other loan amounts might result in a different comparison rate. Comparison rates are based on a secured loan of $30,000 over 5 years for vehicle finance and $50,000 over 5 years for equipment finance, as required under the National Credit Code.