What Income Types Are Accepted?
Income requirements for a 2% deposit home loan: PAYG employees need 6 months in current role, self-employed sole traders need 2 years operating. Commission and bonus income shaded to 80%. Casual employment is not accepted as primary income. Full documentation required.
The 2% deposit home loan requires full documentation. No low doc or alt doc options are available. The serviceability assessment applies a buffer of 300 basis points above the loan rate to ensure you can meet repayments if rates rise. Below is a comprehensive breakdown of every accepted income type and how each is assessed.
PAYG Salary (Full Time and Part Time)
Accepted as a primary income source. You need 6 months in your current role, or 12 months of continuous employment in the same industry or role. Base salary is counted at 100%. Both full-time and part-time employment are accepted. Payslips and bank statements must be current within 30 days at formal approval.
Contract Employment (PAYG)
Accepted with 6 months in the current role or 12 months continuous employment, plus at least 3 months remaining on the contract at settlement and a renewal history. Contract income is shaded over 46 weeks (rather than 52) to account for potential gaps between contracts.
Self-Employed (Sole Traders Only)
Accepted with a minimum of 2 years operating the same business. Income is assessed as the lesser of 100% of the current year taxable income or 120% of the prior year taxable income. Some add-backs such as depreciation may be considered. Companies, trusts, and partnerships are not accepted. Only sole traders qualify.
Casual Employment
Not accepted as a primary income source. Casual income may be accepted by exception for a joint borrower who has been in the same role for at least 12 months. When accepted, casual income is shaded over 46 weeks.
Commission and Bonus Income
Accepted with a minimum of 2 years of history. Commission and bonus income is shaded to 80% for assessment purposes, reflecting the variable nature of these earnings.
Overtime and Shift Allowances
Accepted if received consistently for the last 3 months. For essential workers (firefighters, health service providers, prison officers, police officers, and public transport operations staff), overtime is counted at 100%. For other borrowers, standard shading may apply.
Car Allowance
Accepted at 100% where evidenced as consistent on payslips.
Investment, Superannuation Annuity, and Rental Income
Not eligible as a primary income source. Rental income from the property being purchased (for investment loans) is shaded at 90%. These income types can supplement your application but cannot stand alone.
Parental Leave Income
Accepted with evidence of a return-to-work date. The income is assessed based on your pre-leave salary, provided you have documented confirmation of your return.
Government Pension
May be considered as a supplementary income source. Cannot be the sole source of income for the application.
Family Tax Benefit A or B
Accepted where dependent children are under 11 at the time of application. Cannot be the sole source of income.
Child Support
Accepted where a support agreement is in place and the children are 13 years of age or younger. Cannot be the sole source of income.
Second Job Income
Accepted with a minimum of 12 months with the current employer. Both your primary and secondary employment are assessed together.
Foreign Income
Requires an exception. Income received in Australian dollars into an Australian bank account may be treated as domestic income. All other foreign income arrangements require individual assessment.
Payslips and bank statements must be no older than 30 days at formal approval, not just at pre-approval. If your property search extends beyond 30 days after pre-approval, you will need to provide updated documents. Keep your records current throughout the process to avoid delays.
The Serviceability Buffer
A serviceability buffer of 300 basis points is applied above the actual loan rate. This means if the owner occupier rate is 6.39% p.a. (comparison rate 6.42% p.a., as at 8 May 2026), the serviceability assessment is conducted at 9.39% p.a. to ensure you can meet repayments even if rates increase significantly. This buffer protects you from payment stress in a rising rate environment.
What If My Income Is Complex?
If your income structure does not fit neatly into one of the categories above, or if you have multiple income streams, contact us to discuss your situation. Some income combinations and edge cases may be assessable on an exception basis. The key is that your primary income must be from an accepted source, and all documentation must be current and verifiable.
Back to 2% Deposit Home Loans hub. See also: borrower eligibility, owner occupier loans, investment property loans.
Last updated: 8 May 2026.
