Income and employment home loans

Start with the guide that matches how you work and are paid. Keep each income source separate: the overtime in your main job may need different evidence from a second job.

A tick marks a situation we can assess. The lender still needs to check your work history, income evidence and the rest of your application.

Lenders check which income they can count, your work history and the documents supporting your pay. A long employment history helps explain your work, but you may still need to show what an extra payment on your payslip is for.

First, establish what each payment is. Base salary, overtime, commission and reimbursements can be treated differently. The total gross figure on a payslip may therefore be higher than the income used in the loan assessment.

Next, check the history the lender needs for that particular income. Time with your current employer, earlier work in the same field and gaps between jobs can all matter. A new permanent job is assessed differently from a new second job or a recent move into casual work.

Finally, match the figures to the evidence. Current payslips show what you are earning now; an earlier income statement or final payslip can help explain whether variable income has continued. If the numbers differ, find the reason before estimating what you can borrow.

For permanent full-time and part-time PAYG work, start with the contracted hours and base pay. If the payslip also includes extra shifts or overtime, separate those amounts so they can be checked under the relevant income rules.

With casual or agency work, a recent high pay period may not represent your usual income. Your history, hours and any gaps help explain the pattern. Agency placements can change while the employer stays the same, so confirm who employs you before treating every placement as a new job.

Contract work needs a closer look at the arrangement. Being paid through PAYG can lead to a different assessment from invoicing through your own ABN. The contract, paid leave and tax arrangements help establish how the lender will categorise it.

If you run a business, use the self-employed home loans guide for trading history and financial evidence. Our tradie home loans guide covers work under your own ABN. If the usual financial documents are unavailable, read about low doc loans before deciding which options to investigate. If your income comes through your own company or a family trust, our company director home loan guide and trust income home loan guide explain how lenders follow that income.

A lender may use only part of your overtime, bonus or commission income, or require more history before including it. Regular shift loadings and penalty rates also need to be identified correctly. The specialist guides above explain those differences without treating every extra payment as the same thing.

If your recent pay is lower than usual, explain what changed and supply the evidence. A temporary drop in hours and a lasting change to your roster are different situations. The lender needs enough information to decide which income it can rely on.

The YTD calculator turns year-to-date pay into an estimated annual figure. That is a starting point, not the amount a lender is certain to accept. Check the period covered and separate any income that needs its own assessment before using the result in a purchase budget.

Starting a new role or being on probation does not automatically rule out a home loan. Check the current role alongside your previous work before deciding you need to wait. The new job and probation guides above explain what can help support an application.

For parental leave, the questions include income during leave, the expected return date and pay, and how the household will meet its commitments in the meantime. The maternity leave guide covers the evidence a lender may need.

A HECS-HELP debt can also affect the amount available for repayments. The ATO lists the compulsory repayment threshold as $69,528 for the 2026-27 year. Above that threshold, repayments start at 15 cents for each dollar over it. Lender treatment can differ, so read the HECS and home loans guide before assuming your salary alone determines borrowing power.

I would start with the part of your income that needs explaining, then ask for the documents that answer that question. The table is a starting point; the full list depends on the lender and your application.

Bank statements can help a lender check income and spending. Our guide to how many months of bank statements you need explains what may be requested. Some eligible applications have simpler document requirements.

A lender also considers living expenses and may compare them with the Household Expenditure Measure. If declared spending is well below the benchmark, the lender may ask for an explanation. Getting the income right is only part of the assessment.

The income a lender accepts and the income you want to rely on are separate decisions. Before choosing a purchase budget, ask what repayments would leave for everyday costs and savings. If overtime, commission or a second job is part of the plan, compare the household budget with less of that income.

Decide how much cash you want to keep after buying, as well as how much you can put into the deposit. A higher borrowing limit is useful only if the repayments still suit your household.

If you already own a home, our next-home buying and selling guide covers repayments, sale and purchase timing, and the cash you want to keep. If the assessment leaves less room than expected, read our strategies to improve borrowing power before making changes.

Once your income sources, work history and documents are clear, we can compare lender requirements. Talk through your income and employment with a broker before applying, so you know which part of the assessment needs attention and whether more evidence would help.