Do Lenders Count Bonuses and Commission When You Refinance?
Yes, but cautiously. Variable pay can fall as easily as it rises, so lenders look for a track record. If you work in sales, recruitment, real estate, finance or a senior corporate role, a large share of your income may arrive this way, and how it is assessed can change your borrowing capacity substantially.
How Is Bonus and Commission Income Assessed?
| Income | Common treatment |
|---|---|
| Annual performance bonus | Averaged over the last two years, often counted at around 80% |
| Monthly or quarterly commission | Often averaged over one to two years; some lenders accept 12 months and count up to 100% |
| Declining bonus or commission | Many lenders use the lower, most recent year rather than the average |
| Sign-on, retention or one-off bonuses | Usually excluded |
| Share-based or deferred bonuses | Accepted by a smaller number of lenders, with extra evidence |
These are general patterns across the lending market, not rules. Each lender sets its own policy and changes it without notice, which is the practical reason to have the scenario checked against 50+ lenders before applying.
What Evidence Do You Need?
- Income statements or group certificates for the last two financial years.
- Recent payslips showing year-to-date base and variable pay separately.
- Sometimes an employer letter or commission statements confirming the structure and that it is ongoing.
If last year's bonus was $60,000 and this year's was $30,000, some lenders will only use the $30,000, and shade it. Others average the two. On a refinance where you want to release equity, that choice of lender can be worth a six-figure difference in borrowing capacity. I work out which method favours your actual history before choosing where to apply.
What If You Have Less Than Two Years of History?
Some lenders will work with twelve months, particularly for commission that is paid regularly and where you have a longer history in the same industry. A new role with an untested commission structure is harder, and lenders may rely on base salary alone until a track record exists. See refinancing with a new job or on probation.
How Can You Improve the Outcome?
- Time the application after a strong year-to-date figure is on your payslip.
- Provide the full two-year picture up front rather than waiting to be asked.
- Ask your employer for a letter that separates guaranteed pay from variable pay.
- If base salary alone services the loan, consider applying on base only, which makes the assessment faster.
For the wider process, see refinancing on a PAYG salary.
General information only. It does not take your objectives, financial situation or needs into account. All lending is subject to lender assessment and approval. Fees and figures are typical ranges at 14 November 2026 and can change. Lend & Loan, Australian Credit Licence 511092.
