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’s 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 – 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’s 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’s 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’s income must be used.