It can be difficult to get the home loan you want, when your income includes penalty rates. Not all lenders will view this income the same way.
What is the issue with penalty rates?
In recent months and years, there has been a variety of measures taken by lenders, that can reduce how much applicants can borrow for their home or investment loan, or refinance.
One of these measures includes limiting how much they will count as actual income for those receiving bonuses, overtime and yes even penalty rates.
Will different lenders have different rules?
Lender rules will vary regarding how long you need to have been receiving these additional income types before they are counted.
It also varies as to whether they will accept 100% of these income types, or only take 80%.
If you are working in essential services, such as nursing, police, fire brigade or the military, there can also be greater flexibility for you regarding accepting all of your income.
Get help applying for a home loan when you receive penalty rates.
At Bee Finance Savvy, we go over our clients income, employment history, and other areas of your financial situation. Thus, we can help match you with a suitable lender, when we apply for a home loan on your behalf.
If you would like your income, and any relevant financial information assessed, our savvy broker Desiree is here to help. Based in the Sutherland Shire, Sydney, Desiree has helped many clients achieve their home buying goals.
If you’d like to hear from just some of our satisfied customers, take a look at our reviews on