If your income isn’t fixed—perhaps you earn performance-based bonuses, commission, or irregular overtime—you may be wondering whether lenders will take your full earning power into account when assessing you for a mortgage. The good news is that you can get a mortgage with variable income in 2025, but how lenders treat that income varies significantly.

In this article, we’ll explain how different types of variable income are assessed by lenders, what documentation you’ll need, and what you can do to strengthen your application.

Types of Variable Income Lenders See

Lenders distinguish between types of non-salaried income, each with its own rules:

• Annual Bonus: Often seen in finance, legal, and senior roles. Most lenders will take the average of the last 2–3 years.
• Monthly or Quarterly Commission: Common in sales roles. Some lenders will take 50–100% if it’s regular and evidenced.
• Irregular Overtime: Typically used cautiously unless it's consistent and well-documented.
• RSUs, Share Options or Profit-Based Pay: Treated more conservatively and often excluded or heavily discounted.
• Freelance or Project-Based Earnings: More common for self-employed or contractors. Typically underwritten as part of your core income if consistent.

What Lenders Want to See

To count variable income toward affordability, lenders will expect:

• Consistency: Minimum 12 months’ track record—24 months is preferred.
• Documentation: Payslips, P60s, and in some cases, employer letters or contracts.
• Realism: They may “average out” earnings over a few years to avoid overcommitting the borrower.
• Sustainability: If your bonus or commission is trending down, expect the lender to use the lower figure.

Typical Underwriting Approach

Lenders generally take the following approach to different types of variable income:

• Annual Bonus – Averaged over the last 2–3 years
• Monthly Commission – 50–100% accepted if regular and well-documented
• Irregular Overtime – 0–50% used unless consistent
• RSUs or Share Options – Often excluded or significantly reduced
• Freelance or Project-Based Income – Considered if stable over at least 2 years

Some lenders are more aggressive than others. A whole-of-market broker will be able to match your income profile with a lender whose criteria align.

Self-Employed with Fluctuating Income?

If your income is project-based or tied to business profits, lenders will focus on your tax returns (SA302s) or company accounts. Key considerations include:

• Stability of income
• Retained profit vs. drawings
• Any recent year-on-year decline

Even with ups and downs, it’s possible to present a strong case with the right documents and narrative.

Strengthening Your Case

Here’s what you can do to maximise your borrowing potential:

• Gather consistent payslips and P60s from the last 2–3 years
• Prepare explanations for any large fluctuations (e.g. sabbatical, Covid, maternity leave)
• Use a broker who can pre-assess lender appetite before any credit search is done
• If recently promoted, include employer confirmation of future pay structure

Common Pitfalls

• Applying directly with a lender who only uses 50% of your bonus
• Submitting applications with inconsistent income documentation
• Assuming online affordability calculators will reflect your true capacity

The Bottom Line

Yes, you can get a mortgage with bonus, commission, or variable income in 2025—but you’ll need to be strategic about how you present your case. Lenders want confidence that your earnings are sustainable, so the more you can demonstrate consistency and reliability, the better.

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