- Lawyers
- Updated
- • 5 min read
Bonus Income Home Loans For Lawyers
Bonus income is a significant part of many lawyers’ total compensation, particularly in commercial law, banking and M&A. Whether lenders include bonus income — and how much — varies by lender and application.
Quick Answer
Some lenders may include bonus income in serviceability assessment if it is consistent, documented and meets policy requirements. History and documentation requirements vary.
How Lenders Assess Lawyer Bonus Income
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Bonus consistency — has it been paid regularly over 12–24 months?
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Bonus history — two years of payslips and tax returns typically required
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Employment letter confirming bonus eligibility and structure
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Whether the bonus is contractual or discretionary
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Shading — some lenders use only 80% of bonus income; others use 100%
What Documentation Helps
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Two most recent payslips showing bonus payments
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Tax returns for the last two year
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Employment contract confirming bonus structure
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Employer letter confirming bonus payment histor
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Frequently Asked Questions
Will my bonus income always count?
No. Whether and how much bonus income counts depends on lender policy, consistency and documentation.
Can I use my bonus income for a larger loan?
If included by the lender, bonus income increases assessed borrowing capacity. Policy varies.
Why Bonus Income Is Treated Differently
Bonus income is variable by nature. Lenders cannot know whether a bonus will recur, so they build in a level of conservatism. The result is that bonus income is often shaded, requiring longer history or a higher evidentiary standard than base salary.
What Lenders May Look At
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2 years of payslips and tax returns showing bonus history
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Consistency of bonus payments — regular vs irregular
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Employer letter confirming bonus eligibility and structure
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Whether bonus is contractual or discretionary
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Contractual vs Discretionary Bonuses
Contractual bonuses — where the employer has a legal obligation to pay a set amount — are generally treated more favourably by lenders than discretionary bonuses, which the employer can reduce or eliminate at any time. Most commercial law, banking and M&A bonuses are discretionary.
What Two Years Of History Means
If a lawyer has received consistent bonuses in both of the last two financial years, most lenders will consider including some or all of that income. If the bonus is new or has varied significantly, lenders may only use a conservative portion or exclude it entirely.
Common Mistakes
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Applying before having two full years of bonus history documented
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Not having an employer letter confirming bonus structure
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Assuming the full bonus amount will always be counted
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Not checking which lenders treat bonus income most favourably
Will my bonus always count?
Not automatically. Whether and how much counts depends on lender policy, consistency and documentation.
What if I only recently started receiving bonuses?
With less than 2 years of bonus history, some lenders may exclude the bonus entirely.
Review Bonus Income Assessment
We find lenders that assess lawyer bonus income correctly.
General information only. Lending eligibility, LMI waiver policies, rates and approval outcomes vary by lender and are subject to assessment.
Review Bonus Income Assessment
We find lenders that assess lawyer bonus income correctly.
General information only. Lending outcomes vary by lender and individual circumstances.