Understanding the Role of Commission and Bonus Income in Mortgage Approval
For many Australian professionals, commission and bonus earnings make up a significant portion of their income. However, their fluctuating nature can make it challenging to secure a commercial mortgage. Lenders typically prefer stable, predictable incomes, but solutions exist for borrowers with variable earnings.
How Mortgage Street View Commission-Based Income
Commission and bonuses are non-fixed earnings, meaning they vary based on performance, industry trends, and market conditions. While this creates an income stream with strong earning potential, it also poses risk factors for Mortgage Street.
Mortgage Street takes a holistic approach by assessing:
- Historical income trends – A steady history of commission earnings over 1-2+ years.
- Sustainability – Whether commission-based income is a primary and recurring source of earnings.
- Industry norms – Evaluating how commission structures align with borrower stability.
Challenges Faced by Commission-Based Borrowers
- Lower Borrowing Power – Mortgage Street apply higher stress tests, reducing loan eligibility.
- Income Averaging – Mortgage Street may calculate borrowing capacity using an average of past earnings.
- Proving Stability – Demonstrating long-term consistency is key to securing favourable loan terms.
Mortgage Street’s Tailored Solutions
To support commission-based borrowers, Mortgage Street offers Optimax, Tolerant, Progressive, Receptive, and Liberal products, designed to:
- Accommodate variable income structures through flexible loan assessments.
- Ensure fair income evaluation rather than penalising fluctuating earnings.
- Provide expert broker support to navigate application complexities.
Why Work with a Mortgage Street Broker?
Mortgage Street’s accredited mortgage brokers specialise in helping commission-based earners secure commercial mortgages. They provide tailored recommendations, ensuring borrowers maximise their borrowing potential while maintaining financial stability.
For professionals relying on commission and bonus income, Mortgage Street’s financing solutions provide opportunities to grow and invest. Contact a Mortgage Street accredited broker today to explore your options.