I am using a how much can I borrow calculator and want to know if I can include commissions and superannuation as income?

Hi Seb,

With commissions it will depend on how long you've been consistently earning that part of your income.
Most lenders require you to prove 2 years, however some won't.

Generally with Superannuation no, because its a part of your income that is compulsory and allocated for super. However if you're borrowing in for your SMSF that's a different story.

Best you speak to a finance broker to understand your situation better and best prepare you for an application to avoid disappointment if you go to the wrong lender.

All the best,

Daniel

Hi Seb,

Standard policy for most banks will require you to show commission income over the last two calendar years, or two financial years. The kicker is that they will generally take the lower of the two values. There are other banks who will take your commission income received in the current financial year, and some will even look at it over the last three months. There are plenty of options, you just have to know where to look.

Per Daniels comments, unless you're borrowing through an SMSF super doesn't count. If you can't access those funds you can't use them as income.

Whilst this is a self-serving comment, in today's market, it's definitely a great idea to speak with a broker. We/they can help you extract as much value as possible and help you avoid some heartache.

Best of luck on your property journey!

Gerry Ardesi

Hi Seb,

Super - No
Commissions - generally you have to show 2 years of commission earning before they can be counted but some lenders will allow s shorter time. Best to have a chat to a broker who can tell you whic lenders best suit your circumstances.

Cheers,

Michael Budge
Bayside Finance Group
M 0418 547337
E michael@baysidefinance.com.au

Hi Seb,
Just one further point on the Super, if you are a business owner and choose to contribute to Super over and above SG amount, then the extra amount can be added back to your net profit figure as derived business income

Cheers
Scott

Most / all lenders include gross base income (no superannuation) and then 80% of any bonus which has been received over a 2 years period. If self employed - you can include Net income + addbacks which can be any super above the 9.5%, depreciations, interest being refinance and any one off costs the lender accepts.

Seb, some lenders will accept commission income but not all. The commission income generally needs to be regular & part of your employment contract. No lender will accept super contributions as income for servicing home loan.

Pete Dall
0414 583 233