How Is Commission Income Assessed by Lenders?
Commission income is generally assessed based on consistency, with most lenders looking at a six-month period. If your payslip shows six months year-to-date, that income can be annualised to support your loan application.
If you don't yet have six months of commission history, other lenders may take a different approach by reviewing the past 12 months and calculating the commission earned above your base income. The right option depends on the lender and the time of year, as commissions are often weighted more heavily at the start of the year than in the middle or end.
Understanding where you sit in your industry, along with your sales and incentive structure, is key. Positioning yourself with the right bank ensures your commission income is assessed in the most favourable way.
