Home Loans for Real Estate Agents and Commission Earners — Value Lending
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Commission earners

Home Loans for Real Estate Agents and Commission Earners

Lenders read this situation with their own rules. This page sets out what is different for commission earners, what to have ready, and where the concessions are.

Who this covers: real estate sales agents and principals, car and equipment sales, recruiters, business development and account managers, financial advisers on fee or commission, and anyone whose payslip is mostly variable.

What lenders do differently

Averaged, and usually shaded

Commission is counted on two years of history, typically the lower year or an average with growth capped, and often at 80 per cent. A record year followed by an ordinary one is assessed on the ordinary one. Base or retainer is counted in full.

One year, sometimes

Where the role has a meaningful retainer and the commission has twelve months of history in the same role, some lenders count it from one year's evidence. A move between agencies in the same role usually carries the history across.

Agents on an ABN

Many agents are contractors to the agency on an ABN, paid gross commission. Lenders then assess on tax returns like any self-employed borrower, with the agency's commission statements as support; a well-kept BAS history helps where returns lag.

Timing the application

Because the assessment uses the year-to-date and the last two group certificates or returns, applying just after a strong year closes and before a quiet quarter shows reads better than the reverse. The income annualisation calculator shows how the year-to-date is read.

Worth knowing before applying

Clawback provisions on a commission paid in advance can be asked about; a principal drawing from a company is read on the company's returns; and a lender's shading differs enough that the same agent's capacity can vary by 20 per cent between two lenders.

The tools that fit

Policies on all of the above differ lender to lender and change without notice; the value of the conversation is knowing which lender's policy reads your payslip best on the day. Understanding how your income is read before you apply is what makes the application calm.

Commission earners

Three short notes on lending for commission earners

How your income is read, what the deposit position looks like with the concessions that apply to you, and the order of a calm application. Nothing else, and you can stop them with one click.

General information only; it does not take your circumstances into account and is not credit or financial advice. Lender policies, insurer premiums and government scheme rules vary and change. Value Lending Pty Ltd is a Corporate Credit Representative (515167) of Connective Credit Services Pty Ltd (ACL 389328).