Commission Income Mortgage

Commission is a common form of income for persons working in sales areas such as retail. Employees generally receive a percentage of the total amount made on a sale.

Some people have a base salary as well as commission however, it may still be difficult to get approval for a home loan as some lenders will only take the base into account.

We work with lenders who know that commission payments are a reliable source of income and are willing to view your mortgage application. Read on to find out more!

How do the banks view commission income?

Although working on a commission basis offers high payments per sale, this income is not always guaranteed. You may be a real estate agent that has landed a lucrative sale, but you may not have similar success for months! Therefore, banks doubt your ability to commit to regular loan repayments due to some concerns about a non-consistent income stream.

Will I get approval?

Leave the hassle and stress of applying in our hands. We know which banks will accept your commission payments! Speak to one of our expert brokers. They are experts in mortgage approval and receive commission too, so they understand your situation.

Contact us on 1300 886 115 or enquire online to find out how we can help you pair you with a lender, to maximise approval!

Who works on a commission basis?

Many industries pay by commission, including but not limited to:

  • Real estate agents
  • Mortgage brokers
  • Retail product sales
  • Car sales
  • Travel

Most people in these industries get paid both a base salary and a commission on any sales made. However there are some who earn only their commission. This type of income however is not always guaranteed and depends largely on your performance.

The possibility of your earnings reducing below your ability to service your loan causes some banks to assign you a higher risk. They may choose to give you a smaller loan, or decline your application altogether.

Mortgages that may apply to you include and agency worker mortgage, or possibly an overtime mortgage. You may also be earning commissions in your second job as well.

We know which lenders approve these types of loans! If your income includes regular commission payments, we can help. To talk to us call 1300 886 115 or enquire online today.

What do I need to provide?

When applying with one of our lenders, you will usually be required to provide:

  • Two most recent pay slips which evidence your year to date income

Where your pay slips do not contain this information, you may have to provide:

  • Most recent tax return or group certificate
  • Letter of employment which states that you receive regular income on a commission basis
  • Information regarding your performance and sales

However, each lender differs so it is best to enquire online to find out if you have to provide additional documentation.

Will the banks accept 100% of my commission income?

As with bonus income payments, some lenders may not accept all of your commission as income. Some major banks will only accept 50%. It largely depends on your past financial history and the frequency of commission payments. Most banks take your last two years worth of income based on your tax returns.

Depending on the consistency of that income and the bank’s policy they may accept 50%, 75% or 100%. However, we know lenders that can accept 100% of your commission! In this case, you will be required to provide pay slips for the last 3 months to evidence that commission is frequently received as a form of payment.

Speak to our mortgage brokers

Whatever your employment type or form of remuneration, we know the right lenders that will approve your employment mortgage application! If you are working on a commission basis and are concerned that the banks will not accept it their serviceability assessment, speak to us today!

Minimise the hassle associated with complicated guidelines and varying lending policies and maximise your chances of getting approval for a home loan. Enquire online or call 1300 886 115 today.