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Example scenario

Links Property Finance · Worked example from a Sydney mortgage broker: Will a Lender Count My Overtime?

A paramedic in Blacktown earned a base salary that looked modest on paper, and roughly a third again on top of it in shift penalties, overtime and allowances.

Reviewed by Charles Touma Updated 18 October 2026

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Charles Touma, mortgage broker at Links Property Finance

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Will a lender count your overtime?

Often, at the right lender. Some count regular rostered overtime, penalties and allowances at close to full value with a year or two of history; others count half or none of it.

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On the same payslips that can change borrowing power by tens of thousands, which is what this example shows.

Part of the employment and income home loans guide.

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What would the repayments be?

Quick repayment estimate

Quick repayment estimate

$600,000
6.00%
30
Estimated repayment$3,597/mo≈ $1,660 per fortnight · total interest $695,029

If things change

Rate rises 1%$3,992/mo+$395 a month
25‑year term$3,866/mo+$269 a month, saves $135,287 interest
Lender’s test rate (+3%)$4,828/mowhat your budget is assessed at

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What was the situation?

A family on the porch of their home
  • Permanent full-time with an ambulance service, six years in the role, rostered shift work with penalties paid at award rates, plus regular overtime.
  • Buying a first home with a partner earning a conventional salary and a 12 per cent deposit between them.

What was the problem?

A family together in their backyard
  • Lenders discount variable income because it is variable.
  • That logic is sound in general and badly wrong for rostered essential-services work, where the penalties are not windfalls but the structure of how the job pays.
  • Applied bluntly, it can price a household out of a suburb they can comfortably afford.

What made it difficult?

The treatments differ enormously. A common approach counts a fixed percentage of overtime, often somewhere between 50 and 80 per cent, averaged over one or two years. Some apply more generous policies specifically to essential-services and healthcare employment.

Some lenders count rostered shift penalties at full value where the employment is permanent and the pattern is documented, treating them differently from discretionary overtime. The overtime and allowances guide sets out the options, and the healthcare guide covers profession-specific policies.

What does a broker assess?

Two years of payslips and both PAYG summaries, to establish the pattern rather than a good quarter. Which components are award-based and which are discretionary, since lenders separate them. And then the placement decision, which on this file is worth more than any rate negotiation.

The employment letter, confirming permanency and the rostered nature of the penalties, because a letter that describes overtime as guaranteed reads very differently from one that calls it available.

Moving day at a new home

What are the lending considerations?

Mainly whether the overtime is genuine and durable: hours loaded up for six months to lift an application become a repayment you may not want to carry in three years, and a good broker will say so.

Where the roster is changing, or a move to part-time is planned, the realistic assessment runs on the income that will be there.

Lenders will also want to see that the base salary alone leaves the household somewhere near survivable, which is a reasonable test and a useful one for the borrower too.

What can borrowers take from this?

If a meaningful share of your income arrives as penalties or overtime, the lender you apply to matters more than almost anything else about your file.

Bring two years of evidence and an employment letter that describes the roster accurately, and ask specifically how each component will be treated before an application is lodged rather than after a number comes back low.

Common questions about overtime and shift income

Do lenders count my overtime?

Yes, but differently: some take a percentage, some average it over a period, and some count it in full for particular occupations, commonly essential services. The treatment can move a borrowing figure a long way. Overtime and allowances has the detail.

Why is my base salary not enough?

For shift-based work the base can be a fraction of real earnings. The right lender counts the income you earn, evidenced through payslips and a year-to-date figure.

What paperwork proves shift income?

Recent payslips showing the pattern, a year-to-date total, and the prior year's summary. A consistent history is what turns loadings from a maybe into counted income.

Talk through a file like this one

Thirty minutes with Charles: how your penalties and overtime read to different lenders, and which reading your file deserves.

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A family in front of the sold sign at the home they bought together
Charles Touma, mortgage broker at Links Property Finance
Reviewed by Charles Touma Director & Mortgage Broker · MFAA member · Credit Representative 579003 under ACL 389328 About Charles · All scenarios

This is an illustrative example scenario, not a description of a specific client and not a testimonial. The figures are realistic but rounded, no lender is named, and no outcome is promised, every application is assessed on its own facts. General information only, not credit or financial advice.

Official sources for the figures on this page: Revenue NSW, transfer duty. Scheme rules change; the official pages are the final word. Checked against these sources on 12 October 2026.