Commission income home loans: what will the bank count?

Matthew was a PAYG medical device sales specialist. He had changed employers within the same industry and now earned an $85k base plus monthly commission. In 7 months, he had already received $42k of commission.

His bank used only the base salary and assessed borrowing capacity at about $480k. That left him well short of the $750k home he wanted to buy, even though his prior 2 years showed $65k and $72k of commission.

I pulled together his 2 earlier PAYG summaries, 7 months of current payslips, OTE contract and a letter from his employer. I found a lender that could use that history instead of treating him like a brand new salesperson. It counted $72k of commission and assessed his total income at $157k, lifting his borrowing capacity to about $780k.

We got Matthew formally approved to buy the $750k home with a 15% deposit.

Matthew did not need to wait another 17 months. His old income statements showed he had earned commission for years, and his current payslips showed the new job was already producing it. I used both instead of letting the bank assess him on his $85k base alone.

What this can mean for borrowing power

Nothing else changes in this example. The only difference is how much commission the lender uses.

That is a $300k difference between base only and using the full $72k.

Illustration only. It keeps the applicant and other assumptions the same. Debts, expenses, dependants, deposit and lender rules can change the result.

Matthew had earned $42k over 7 months. At the same pace, that works out to $72k over a full year.

That gives me a starting figure. It does not mean every bank will use all $72k. One may use 80%, another may compare it with earlier years, and another may want more time in the job first.

The dates matter. If the same $42k covered 9 months instead of 7, the annual figure would be $56k. That is why I check the first commission payment and the exact payslip period rather than relying on the OTE in the contract.

I compared 7 lenders. Some can start looking at paid commission after about 3 months, some want around 6 months, and others normally want a longer history.

For Macquarie, 3 months refers to payslip year-to-date coverage, not a universal commission waiting period. Shorter coverage needs additional prior-year evidence, with the lower supported income used. Checked on 17 September 2026 against Macquarie’s credit guidelines, version 14.1 dated 10 September 2026.

Read our lender reviews: St George; ANZ; Macquarie; NAB; ME Bank; Commonwealth Bank; ING;

Lender rules checked 31 July 2026. A general starting-point view of the 7 lenders named above, not a ranking, a recommendation or credit advice. Lending policy changes without notice, and any loan is subject to the lender's own credit assessment and approval of your full application.

Have you received commission payments?I can compare your payment history and year-to-date earnings to see how different lenders may assess your commission.

This is why I check the history before talking about percentages. A lender offering to use 80% is no help if its minimum history means it uses none of your commission today.

Matthew's result came from matching the right evidence with the right lender. Your deposit, debts and the way your commission is paid can still change which option works best.

Not always. Some banks focus only on the time spent with your new employer. Others may also look at the commission you earned in an earlier job in the same industry.

For Matthew, the 2 earlier income statements showed commission was a normal part of his work. His new contract and 7 months of payslips showed what the new role was actually paying.

If the role itself is new, the new job guide covers the base salary and employment details separately.

On-target earnings (OTE) is what your package could pay if you hit the target. It explains the deal, but it is not the same as commission already in your bank account.

I check 5 things:

• your base salary

• the OTE in the contract

• commission paid so far this year

• the last 1 or 2 full-year totals

• how often commission is paid and whether it can be clawed back

If the OTE says $180k but the payslips support $135k, I start with the figure the payslips can prove. If you have beaten the OTE for 2 full years, that stronger history may help, but I still check how the lender will average it.

A bonus can follow different rules from commission. If you receive both, the income and employment guide shows how I separate each part of the income.

Include all commission you have received when you enquire, even if a previous estimate left it out. Keep the actual payments separate from the OTE. Also consider the timing of your household bills: what repayments could you manage during a quieter sales period or while waiting for commission to be paid?

Start with:

1. two recent payslips

2. a payslip showing the current year-to-date total and period covered

3. the previous financial year's final payslip or Tax Ready ATO income statement

4. the employment contract and commission plan

5. prior PAYG summaries or ATO income statements when history matters

6. an employer letter where the frequency, permanence or calculation is unclear

7. a short timeline if the employer changed

If anything is unclear, I can ask your employer to confirm the start date, base salary, whether commission is ongoing, how often it is paid and how much has been paid over a set period.

Quarterly commission may not appear on the latest ordinary payslip. Some sales are recorded now but paid after installation or settlement. I line up the documents with the way you are actually paid so a missing payment does not make the income look lower than it is.

The year-to-date income calculator can annualise the amount. It cannot tell you which lender may accept it.

No. This guide covers commission paid through payroll, with tax taken out by your employer.

If you invoice through an ABN or company and pay the costs of earning the commission yourself, the bank may assess you as self-employed instead. That is common for some real estate agents, consultants and independent sales representatives.

I check who pays you, who handles the tax and who pays the work expenses. If the income runs through a business, use the self-employed home loan guide.

Yes. A pre-approval is not very useful if nobody can tell you how much commission the bank actually used. Before you bid or sign a contract, I want 4 numbers written down:

1. the base salary used

2. the commission figure before any reduction

3. the percentage or average applied

4. the total income used in the assessment

In Matthew's case, the approved assessment used his $85k base plus $72k of commission. That was enough for the $750k purchase.

If the purchase depends on commission, I would not rely on an automated result that used only the base or a calculator that assumed all the OTE would count.

Selected commission rules were checked on 31 July 2026. They are general starting points only. Lenders can change their rules and may assess the full application differently.

Hunter Galloway. Australian Credit Licence 389328. Credit Representative 000476903. This page contains general information and is not a credit assessment or promise of approval.

Client examples are based on real situations. Names and identifying details have been changed.

Content reviewed on 17 September 2026. Lender-policy verification dates are stated separately; lender requirements should be confirmed for your application.