Compare popular home loans

Sort By
Product
Advertised Rate
Comparison Rate*
Company
Monthly Repayment
Features
Real Time Rating™
Go to site

1.89%

Fixed - 2 years

2.94%

Suncorp Bank

$1.3k

Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied

3.57

/ 5
More details

2.59%

Fixed - 5 years

2.53%

UBank

$1.4k

Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied

2.47

/ 5
More details

3.03%

Variable

2.70%

UBank

$758

Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied

1.92

/ 5
More details

2.29%

Fixed - 3 years

2.74%

UBank

$1.3k

Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied

2.05

/ 5
More details

2.74%

Fixed - 5 years

2.83%

UBank

$1.4k

Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied

2.12

/ 5
More details

2.89%

Variable

2.89%

UBank

$1.4k

Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied

2.50

/ 5
More details

Learn more about home loans

Many Aussie salespeople earn a commission on the products or services they sell, which is calculated as a percentage of the total value of the sales. Such commissions can vary for several reasons, such as seasonal demand for products or difficulties in completing sales transactions.

For this reason, home loan lenders may think of sales commissions as being irregular and not a guaranteed income. While they may accept your home loan application, they can ask you to consider borrowing a lesser amount. However, by submitting easily verifiable proof of your income, and illustrating your ability to repay the loan, you will probably get the loan amount you require.

How do lenders consider commissions when reviewing a home loan application?

For most home loan lenders, commissions are seen as non-standard income, as you may not receive a fixed salary regularly. This is most commonly the case with salespeople, who could be selling anything from computing equipment to homes to automobiles. Depending on the product or the service you’re selling, you can earn significantly different commissions.

  • For instance, a real estate agent earning a 2.5 per cent commission could make $12,500 for selling a house for $500,000. On the other hand, if you earn a 5 per cent commission on computer parts you sell for $10,000, your commission income will be $500. 

Your total earnings over time can vary based on the number of sales achieved. The amount you earn in commissions can also increase with your experience as a salesperson, as your commission may increase over time. In some cases, you may even get a bonus or retainer if you can achieve specific sales targets. All these variations may not be easily understood by a lender whose concern is only about your ability to repay the loan. If you have two years worth of tax returns, lenders may consider your home loan application more favourably.

There are other ways you can make it easy for a lender to approve your home loan application. When buying a house with commission-based income, you would’ve calculated the amount you need to earn and the amount you need to set aside to pay for the home. Saving up and putting aside the cash for your home in a separate account, even for a few months, can help illustrate to lenders your ability to repay a home loan. Similarly, if you avoid accumulating too much debt or you repay any debts without eating into your savings. These actions can help prove to a lender that you have the borrowing power for the loan. 

What income documents do I need to submit as proof of commissions?

Your income documents are possibly the most critical part of your home loan application, and submitting the right ones can help speed up lending decisions. For this reason, lenders specify a list of documents they most prefer, along with suitable alternatives. However, the documents you can submit depends on the nature of your employment.

Most salespeople are categorised as commission agents and not salaried employees, which means you may not be receiving PAYG payslips. If commissions are only part of your income as an employee, for instance, at a car dealership. Under these circumstances, you may still receive a payslip you can use as proof of income.

Whether or not you receive payslips, you’ll still need to file tax returns which can then be submitted as proof of your earnings. Lenders may ask you for at least two years’ tax returns to check if your income varies significantly from year to year. Some lenders may just consider your most recent taxable income as the amount you’re likely to earn. Other lenders may calculate the average of your income for the past two years. And in some cases, lenders may consider the lowest amount you’ve earned as a more reliable estimate of your income.

Lenders may allow you to submit other documents if you don’t have two years’ tax returns. These include a letter from your employer or the company you’re working as an agent for. If you’re earning commissions while self-employed, you can apply for an alternative documentation or ‘alt doc’ home loan. You can then submit either your tax returns or an accountant’s letter.

These certify that you’re earning commission income, including a summary of your sales targets and realisations for the past few months. However, lenders may limit your loan amount if you apply for an alt doc home loan.

Document options for commisson-based income earners:

Type of Loan Required Home Loan Documents
Traditional, or full documentation
  1. PAYG payslips (two most recent)
  2. Tax returns (for two years) with notices of assessment
  3. Letter from employer certifying that you earn commissions
Alternative documentation (alt doc)
  1. One year’s tax return (if available)
  2. Letter from employer (if available)
  3. Documentation of sales targets and realisations
  4. Letter from Accountant

When you apply for a home loan, commission income may not be fully taken into account by many lenders. You will need to submit documentation certifying your earnings for at least six months to a year, depending on the lender, particularly if you can’t submit payslips.

Ideally, you should submit at least one year’s tax return along with supporting documentation. For instance, if the documents you submit only help the lender confirm your earnings for the past three months. They may only consider 80 per cent of your commission income when calculating your borrowing power.

How much will lenders let me borrow if I earn only commissions?

Most lenders express the amount you can borrow with your home loan as a percentage called a Loan to Value Ratio (LVR). Essentially it’s the total amount of your loan as a percentage of the value of the property you are purchasing. The most common LVR for a home loan is 80 per cent, which means you need to pay 20 per cent of your home’s value as the deposit. But depending on a lender’s estimate of your income, they may approve a loan up to 95 per cent LVR if you also have an excellent credit rating.

You may have a lower interest rate on an 80 per cent LVR home loan, and you will not need to pay for Lender’s Mortgage Insurance (LMI) either. LMI is a policy that covers the lender for financial losses if you’re unable to repay the home loan. A 95 per cent LVR home loan may require you to pay for LMI, unless you can ask someone, like your parents, to go guarantor on your home loan. In some cases, you can even borrow 100 per cent with a guarantor home loan, without paying LMI. 

On the other hand, if the lender feels your income cannot be fully verified, they may only approve a 60 - 80 per cent LVR home loan. This is usually the case if you’re asked to apply for an alt doc home loan. You can choose to borrow more and possibly pay for LMI or negotiate with the lender to see if they’ve estimated your income correctly. For instance, your commission income may have increased in the past few months, perhaps as a result of you trying to earn more to buy your home. 

However, the lender could have looked at your average income over the past year and decided that it doesn’t give you enough borrowing power. You may need to check with other lenders or speak to a mortgage broker to help you get your application approved.

Can someone earning commissions qualify for special home loan deals?

No matter how irregular and variable your commission payments, they’re still a perfectly acceptable source of income. However, it may take you some effort to get the right documents to prove this to a lender and ensure that they consider your entire earnings as valid income. Further, getting a suitable home loan deal may also require you to have a high credit score and a healthy credit history showcasing your ability to make debt repayments. 

Some lenders may offer you a lower interest rate if your income is above a certain amount and your credit history is excellent. An excellent credit rating and regular commission payments may help you qualify you for a loan with 90% LVR or higher without paying LMI. 

If you’ve had any repayment issues that have impacted your credit score, it would be good to build up your score again before applying for a home loan. Also, getting someone with good financial standing to go guarantor on your home loan can help ease the process. This way, you may be able to get a home loan with an LVR up to 100% approved, with lenders waiving the LMI requirement on guarantor home loan. 

A little homework can help you get better home loan deals. Things like checking how different lenders may estimate your income and if they include income besides commissions. If you’ve recently taken on or are planning to take on more work to earn more commissions, you should discuss that with the lender. Setting aside some money from your income may be useful in showcasing to lenders that you have a strategy for repaying the home loan. You can then use this savings to pay the deposit. Also, if you’re currently repaying other debts or loans, consolidating or refinancing them may help improve your borrowing power. 

What to look out for when applying for a home loan with commission income

As someone earning commissions, you should keep in mind that your home loan application may be scrutinised more thoroughly than someone on a salary. You’ll, therefore, need to prove quite clearly that you have sufficient income, savings, and borrowing power to repay the loan. However, you may still face some situations which can make lenders unwilling to approve your loan or offer you your prefered loan size. Some situations could include if you’ve been earning commissions for a fairly short time or have switched employers recently.

If you fall into one of these cases, you can either look for a lender who’ll accept your combined work experience with past employers. Or a lender who’ll allow you to submit alternative documents as proof of your income. Some lenders might opt to estimate your income using their calculations even when you submit your tax returns. And they may not always include your entire commission income in their estimate. You could ask lenders about their income estimation method before applying for a home loan with them. A mortgage broker can also help you navigate various lenders’ policies and find you the most suitable home loan. 

Frequently asked questions

Can I change jobs while I am applying for a home loan?

Whether you’re a new borrower or you’re refinancing your home loan, many lenders require you to be in a permanent job with the same employer for at least 6 months before applying for a home loan. Different lenders have different requirements. 

If your work situation changes for any reason while you’re applying for a mortgage, this could reduce your chances of successfully completing the process. Contacting the lender as soon as you know your employment situation is changing may allow you to work something out. 

What is a debt service ratio?

A method of gauging a borrower’s home loan serviceability (ability to afford home loan repayments), the debt service ratio (DSR) is the fraction of an applicant’s income that will need to go towards paying back a loan. The DSR is typically expressed as a percentage, and lenders may decline loans to borrowers with too high a DSR (often over 30 per cent).

How can I get a home loan with bad credit?

If you want to get a home loan with bad credit, you need to convince a lender that your problems are behind you and that you will, indeed, be able to repay a mortgage.

One step you might want to take is to visit a mortgage broker who specialises in bad credit home loans (also known as ‘non-conforming home loans’ or ‘sub-prime home loans’). An experienced broker will know which lenders to approach, and how to plead your case with each of them.

Two points to bear in mind are:

  • Many home loan lenders don’t provide bad credit mortgages
  • Each lender has its own policies, and therefore favours different things

If you’d prefer to directly approach the lender yourself, you’re more likely to find success with smaller non-bank lenders that specialise in bad credit home loans (as opposed to bigger banks that prefer ‘vanilla’ mortgages). That’s because these smaller lenders are more likely to treat you as a unique individual rather than judge you according to a one-size-fits-all policy.

Lenders try to minimise their risk, so if you want to get a home loan with bad credit, you need to do everything you can to convince lenders that you’re safer than your credit history might suggest. If possible, provide paperwork that shows:

  • You have a secure job
  • You have a steady income
  • You’ve been reducing your debts
  • You’ve been increasing your savings

Mortgage Calculator, Loan Amount

How much you intend to borrow. 

How common are low-deposit home loans?

Low-deposit home loans aren’t as common as they once were, because they’re regarded as relatively risky and the banking regulator (APRA) is trying to reduce risk from the mortgage market.

However, if you do your research, you’ll find there is still a fairly wide selection of banks, credit unions and non-bank lenders that offers low-deposit home loans.

Does each product always have the same rating?

No, the rating you see depends on a number of factors and can change as you tell us more about your loan profile and preferences. The reasons you may see a different rating:

  • Lenders have made changes. Our ratings show the relative competitiveness of all the products listed at a given time. As the listing change, so do the ratings.
  • You have updated you profile. If you increase your loan amount, the impact of different rates and fees will change which loans are the lowest cost for you.
  • You adjust your preferences. The more you search for flexible loan features, the more importance we assign to the Flexibility Score. You can also adjust your Flexibility Weighting yourself, which will recalculate the ratings with preference given to more flexible loans.

What happens to your mortgage when you die?

There is no hard and fast answer to what will happen to your mortgage when you die as it is largely dependent on what you have set out in your mortgage agreement, your will (if you have one), other assets you may have and if you have insurance. If you have co-signed the mortgage with another person that person will become responsible for the remaining debt when you die.

If the mortgage is in your name only the house will be sold by the bank to cover the remaining debt and your nominated air will receive the remaining sum if there is a difference. If there is a turn in the market and the sale of your house won’t cover the remaining debt the case may go to court and the difference may have to be covered by the sale of other assets.  

If you have a life insurance policy your family may be able to use some of the lump sum payment from this to pay down the remaining mortgage debt. Alternatively, your lender may provide some form of mortgage protection that could assist your family in making repayments following your passing.

What is a fixed home loan?

A fixed rate home loan is a loan where the interest rate is set for a certain amount of time, usually between one and 15 years. The advantage of a fixed rate is that you know exactly how much your repayments will be for the duration of the fixed term. There are some disadvantages to fixing that you need to be aware of. Some products won’t let you make extra repayments, or offer tools such as an offset account to help you reduce your interest, while others will charge a significant break fee if you decide to terminate the loan before the fixed period finishes.

How often is your data updated?

We work closely with lenders to get updates as quick as possible, with updates made the same day wherever possible.

How personalised is my rating?

Real Time Ratings produces instant scores for loan products and updates them based what you tell us about what you’re looking for in a loan. In that sense, we believe the ratings are as close as you get to personalised; the more you tell us, the more we customise to ratings to your needs. Some borrowers value flexibility, while others want the lowest cost loan. Your preferences will be reflected in the rating. 

We also take a shorter term, more realistic view of how long borrowers hold onto their loan, which gives you a better idea about the true borrowing costs. We take your loan details and calculate how much each of the relevent loans would cost you on average each month over the next five years. We assess the overall flexibility of each loan and give you an easy indication of which ones are likely to adjust to your needs over time. 

Why is it important to get the most up-to-date information?

The mortgage market changes constantly. Every week, new products get launched and existing products get tweaked. Yet many ratings and awards systems rank products annually or biannually.

We update our product data as soon as possible when lenders make changes, so if a bank hikes its interest rates or changes its product, the system will quickly re-evaluate it.

Nobody wants to read a weather forecast that is six months old, and the same is true for home loan comparisons.

What is a specialist lender?

Specialist lenders, also known as non-conforming lenders, are lenders that offer mortgages to ‘non-vanilla’ borrowers who struggle to get finance at mainstream banks.

That includes people with bad credit, as well as borrowers who are self-employed, in casual employment or are new to Australia.

Specialist lenders take a much more flexible approach to assessing mortgage applications than mainstream banks.

Mortgage Calculator, Repayment Type

Will you pay off the amount you borrowed + interest or just the interest for a period?

How much are repayments on a $250K mortgage?

The exact repayment amount for a $250,000 mortgage will be determined by several factors including your deposit size, interest rate and the type of loan. It is best to use a mortgage calculator to determine your actual repayment size.

For example, the monthly repayments on a $250,000 loan with a 5 per cent interest rate over 30 years will be $1342. For a loan of $300,000 on the same rate and loan term, the monthly repayments will be $1610 and for a $500,000 loan, the monthly repayments will be $2684.

Mortgage Balance

The amount you currently owe your mortgage lender. If you are not sure, enter your best estimate.

How much information is required to get a rating?

You don’t need to input any information to see the default ratings. But the more you tell us, the more relevant the ratings will become to you. We take your personal privacy seriously. If you are concerned about inputting your information, please read our privacy policy.

Savings over

Select a number of years to see how much money you can save with different home loans over time.

e.g. To see how much you could save in two years by switching mortgages,  set the slider to 2.

What is the ratings scale?

The ratings are between 0 and 5, shown to one decimal point, with 5.0 as the best. The ratings should be used as an easy guide rather than the only thing you consider. For example, a product with a rating of 4.7 may or may not be better suited to your needs than one with a rating of 4.5, but both are probably much better than one with a rating of 1.2.

Mortgage Calculator, Repayments

The money you pay back to your lender at regular intervals. 

What is a redraw fee?

Redraw fees are charged by your lender when you want to take money you have already paid into your mortgage back out. Typically, banks will only allow you to take money out of your loan if you have a redraw facility attached to your loan, and the money you are taking out is part of any additional repayments you’ve made. The average redraw fee is around $19 however there are plenty of lenders who include a number of fee-free redraws a year. Tip: Negative-gearers beware – any money redrawn is often treated as new borrowing for tax purposes, so there may be limits on how you can use it if you want to maximise your tax deduction.