Salary and wages
  • 100% accepted if length of employment criteria is met
Overtime
  • 50% may be used to assist in serviceability if payment is regular and is a condition of employment
  • 100% may be used where employment is in the Essential Services industry (e.g. Ambulance, Police Service, Nursing, etc.)
Shift allowance
  • 100% may be used only if it is a condition of employment and is an industry standard
Rental income
  • 80% of gross rental income may be added to net salary/wage income (50% of gross rental income accepted for high density and/or inner city apartments. Refer to High Density Apartments Section 5.8.9 for further details).
  • Where a significant portion of a borrower‚Äôs income is derived from rental income, and the proposal is heavily reliant on that amount to meet servicing requirements, the application may be considered too rent reliant
  • Level of gross rental accepted for servicing should not exceed:
    » 40% of gross salary or wage income for incomes less than $60,000
    » 65% for incomes greater than $60,000 and less than $100,000 and
    » 70% for incomes greater than $100,000
Investment income (interest, dividends)
  • 80% of income as demonstrated in tax returns ‚Äì income level must be evidenced over the past 2 years
Social Security benefits/Government Pension
  • 100% accepted where it is considered permanent for the next five years (unemployment benefit/sickness benefits are not acceptable)
Car allowance
  • 100% may be added to gross taxable income
Fully maintained company car
  • $5,000 p.a. may be added to gross taxable income
Child Support/child maintenance
  • 100% accepted if the maintenance agreement is registered with the Child Support Agency
  • Six months consistent payments can be evidenced via the borrower‚Äôs bank account statements and…
  • It is considered permanent for the next five years
Self-Employed
  • Borrowers must produce the last 2 years business and personal tax returns.¬† Income evidence must demonstrate consistent income levels for the years under review, however, it would not be unrealistic for each year to reflect an increase up to 20% in the net profit.¬† Where taxable income has increased over the last two years by less than or equal to 20%, then the latest year‚Äôs income is to be used.¬† Where taxable income has increased over the last two years by more than 20%, then maximum of 120% of the previous year‚Äôs income must be used.