Do Lenders Count Overtime When You Refinance?
Yes. For many nurses, police officers, paramedics, firefighters, transport and mining workers, overtime and penalties are a permanent part of pay rather than an occasional extra, and most lenders recognise that. The question is how much of it they count and how much history they want to see.
How Much Overtime and Shift Income Is Counted?
| Income | Common treatment |
|---|---|
| Regular overtime | Often 80%; some lenders 100% where it is a condition of employment or the borrower is in an essential service |
| Shift penalties and loadings | Often 100% where they are built into the roster, otherwise 80% |
| Allowances (on-call, uniform, district, qualification) | Varies; ongoing allowances are more readily accepted than one-off ones |
| Irregular or one-off overtime | Often excluded or heavily shaded |
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.
How Much History Do You Need?
Most lenders want to see that the extra income is consistent. Six months of history is enough at some, twelve months at others, and a few ask for two years. The usual evidence is a recent payslip with year-to-date figures, your last income statement from myGov, and sometimes a letter from your employer confirming that overtime is regular and expected to continue.
If your last two payslips happen to be quiet fortnights, a lender working only from those will understate your income. I ask for the year-to-date figure and last financial year's income statement, annualise it properly, and send the file to a lender whose policy uses that method. For shift workers this single step is often the difference between a decline and an approval.
Which Workers Get the Most Favourable Treatment?
Several lenders have specific policies for essential service and health workers, including nurses, midwives, police, paramedics, firefighters and some defence roles. These can include counting 100% of overtime and penalties, and in some cases lenders mortgage insurance concessions. See home loans for nurses and allied health for the detail on health roles.
What Can Reduce the Overtime a Lender Will Count?
- A recent change of employer or roster, which resets the history.
- Overtime that has clearly dropped in the current year compared with the last.
- Time on leave during the period, which lowers the year-to-date figure. A note explaining the leave helps.
- Payslips that do not separate base pay from overtime and penalties.
Is It Worth Refinancing If Overtime Makes Up a Lot of Your Pay?
Usually yes, provided the application goes to a lender that counts it. If your first attempt was declined or the borrowing capacity came back low, the cause is often policy rather than your finances. Start with refinancing on a PAYG salary for the full picture, and if serviceability is still tight, see mortgage prison for the options.
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.
