When it comes time to borrow money to purchase property, you want to ensure you maximise your borrowing capacity by fully considering all your potential income sources. While banks and other lenders assess supplementary income differently to your base salary, not having all sources of income assessed correctly could mean the difference between getting the property you want and having to settle for second best.

So, what other sources of income should you include with your loan application? An experienced broker will be able to thoroughly identify all potential income but following are some you may not have considered.

  1. Bonuses/commissions/allowances

Do you earn a regular bonus? If it’s paid monthly or quarterly, some lenders may consider it as part of your income assessment. The same applies to commissions and some allowances such as shift or penalty allowances. Different lenders will treat these differently so check with your broker first.

  1. Rental income

If you own an investment property, you may be able to include any rent you receive as income. This also applies for any holiday homes you rent out thought this isn’t always the case so seek professional advice first.

  1. Share dividends

If you have a healthy share portfolio, any dividends you earn should also be included as income. As dividend payouts tend to come out infrequently, this is one income source many people forget.

  1. Government benefits

Some pensions will be accepted by lenders as part of your income assessment. In addition, the Family Tax Benefit A & B will also be assessed to determine your borrowing capacity.

  1. Child Support

Any Child Support payments you receive can also be included. You will need to provide proof in the form of assessment notices or court orders.

These are just a few of the alternative sources of income which can be used to assess your borrowing capacity. It’s important to ensure you have your income assessed fully to maximise your chances of getting the loan amount you require. Contact your finance broker for more details.