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.