Servicing and Complex Income
Straight answers on how lenders calculate your income and borrowing capacity, from rental shading and bonuses to casual, contract, parental leave, child support and trust income. General information, current for 2026.
How a lender calculates your income often matters more than the interest rate. Rent is usually shaded, bonuses and commission averaged, and casual or contract income assessed cautiously, but lenders differ widely in how generously, and some count income others ignore, such as future contract income, return-to-work salary, board income, child support, Centrelink payments and trust distributions, under conditions. These guides explain each, current for 2026. General information, not financial or tax advice.
Clear answers to common questions about how lenders assess income for serviceability in Australia: rental income shading, negative gearing, casual and contract income, bonus and commission treatment, parental leave, board income, child support and Centrelink payments, and trust distributions. These describe the kinds of lender policies that exist, which vary by lender and change over time. General information, not financial or tax advice, with tax matters for your accountant and payment details from Services Australia.
Serviceability is where deals are won or lost
How a lender calculates your income, from rental shading to bonus averaging, often matters more than the rate. Two lenders can reach very different borrowing figures from the same documents.
Variable and complex income is treated differently
Rent, bonuses, commission, casual and contract income, and trust distributions are often shaded or averaged, and lenders differ in how generously. The right lender can count meaningfully more.
Some income other lenders ignore can count
Future contract income, return-to-work salary on parental leave, board income, child support and Centrelink payments are accepted by some lenders under conditions, even where others decline them.
Evidence and consistency are everything
Across all these income types, lenders reward a consistent, well documented history. Clear contracts, leases, statements and tax returns make income easier to count.
Where to get help
These are general guides, not financial or tax advice. A broker can match your income profile to the right lender, your accountant should handle tax, and payment details can be confirmed with Services Australia.
- How a lender calculates income, from rental shading to bonus averaging, often matters more than the rate, and lenders differ widely.
- Rent is usually shaded, commonly to around 80 per cent, but some lenders count more, which can lift an investor borrowing power.
- Future contract income, return-to-work salary, board income, child support and Centrelink payments can count with some lenders under conditions.
- Variable income such as bonuses, commission and casual pay is often averaged and shaded, with the treatment varying significantly by lender.
- Evidence and consistency are everything, and tax matters should be confirmed with your accountant while payment details come from Services Australia.
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Servicing and Complex Income: common questions
How much rental income do lenders count for serviceability?
Lenders generally count only a portion of rental income when assessing serviceability, commonly around 80 per cent, to allow for vacancy, management fees and other costs. Some lenders count a higher proportion, in some cases up to the full amount, where the income is well evidenced. How much is counted varies by lender, which can noticeably change an investor borrowing power.
Do lenders factor negative gearing into serviceability?
Some lenders take the tax effect of a negatively geared investment property into account when assessing serviceability, recognising that the tax benefit improves your overall cash position. Others assess more conservatively. How negative gearing is treated varies by lender, and because it is a tax matter, the figures should be confirmed with your accountant. This is general information, not tax advice.
Can I use casual income after only 3 to 6 months in the job?
Possibly. Many lenders prefer around 12 months of casual employment history, but some may accept a shorter period, such as 3 to 6 months, particularly where you have continuity in the same industry or role and the hours are consistent. Whether a lender will do this, and how much of the income it counts, varies, so a short history does not automatically rule you out.
Can a job I have not started yet count for a home loan?
Sometimes. Some lenders will consider income from a signed employment contract for a role starting soon, often within around three months, which can help people such as teachers, graduates and those relocating for work. Lenders generally want the signed contract and a clear start date, and treatment varies, so it is worth checking which lenders will consider future income.
How do lenders treat bonus and commission income?
Lenders generally average bonus and commission income and may shade it, counting a portion to allow for its variability, often looking at a one to two year history. Some lenders average over a shorter period or count a higher proportion of consistent commission. How this income is treated varies by lender, which can significantly affect borrowing power for those who earn a lot of it.
Can I get a home loan while on parental leave?
Often yes. Some lenders will assess your serviceability on the regular salary you are returning to, rather than your reduced or unpaid parental leave income, where you can evidence your return to work. Lenders generally want confirmation of your return date, role and salary, and may ask about childcare arrangements. Treatment varies by lender, so the right lender matters.
Can I use income from renting out a room?
Sometimes, but it is treated cautiously. Income from a boarder or lodger renting a room in your home is not accepted by all lenders, and those that consider it generally want evidence and may count only a portion. Because this income is informal and can be harder to evidence than a formal lease, treatment varies widely, so it is worth checking which lenders will consider it.
Can child support or Centrelink payments count as income?
Sometimes. Some lenders will accept court ordered or formally documented child support, and certain Centrelink payments such as Family Tax Benefit, as income for serviceability, usually subject to conditions like the payments being ongoing and the children being under a certain age. Acceptance and conditions vary widely by lender, so it is worth checking which lenders will count these payments.
Can income distributed from a trust be used for a home loan?
Often yes. Some lenders will count income distributed to you from a family discretionary trust or a unit trust toward your borrowing capacity, where it is consistent and well evidenced through tax returns and financial statements. The treatment depends on the trust structure and the lender, and because trusts involve tax and legal complexity, your accountant should be involved.
General information only. This page provides general information about home loans and is not financial or credit advice, a quote, or a guarantee, and your personal circumstances have not been considered. Lending policies, interest rates, fees and eligibility vary by lender and change over time. Always confirm your own situation with a licensed mortgage broker or lender before acting. Ross McFarlane (Credit Representative 526725) is an authorised Credit Representative of Australian Associated Advisers Pty Ltd t/a Keylend, Australian Credit Licence 392169.