Salary bonus as income.

The company has decided not to increase the base salary for staffs who have their salary at peak, instead, it pays them a bonus, vary each year.

I have checked with the accountant, bonus is not considered as a regular income when the bank assess a loan (not 100% sure about this).

I have checked with the company, the bonus is unable to split up and treat as a regular income.

Is there a way that I can channel the bonus so that the bank would treat it as a regular income...:confused:


Super.
 
Many lenders will count your bonus as income for servicing if it can be demonstrated that the bonus has been paid regularly. Usually it needs to be paid for 2 years running but if it is paid more frequently exceptions may be made.
 
Normally the bank is looking for payslips to demonstrate consistency of earnings. Given bonuses (or derivatives thereof) are considered discretionary they tend to not get assessed in the same fashion. Of course previous tax returns showing bonuses is helpful and I'm sure different banks put a varying amount of emphasis on them, just don't expect them to be considered equal to the regular payments you're guaranteed each month as part of your salary.
 
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Many lenders will count your bonus as income for servicing if it can be demonstrated that the bonus has been paid regularly. Usually it needs to be paid for 2 years running but if it is paid more frequently exceptions may be made.

The bonus is paid once per year regularly during December, but the amount is varied, could be nil to several thousands, so let's say if this year is $5K and next year is $nil, how would the bank assess...:confused:


Super.
 
The bonus is paid once per year regularly during December, but the amount is varied, could be nil to several thousands, so let's say if this year is $5K and next year is $nil, how would the bank assess...:confused:


Super.

They'd assess it as nil. In your example it's not consistent and can't be relied upon in the future.

When a client gets a bonus as part of their income, I try to make it work without the bonus.
 
Usually it needs to be paid for 2 years running but if it is paid more frequently exceptions may be made.

I've been employed with my current employer for almost 6 yrs now, been in my current position since mid 2007.

My last 4 bonuses paid 1/2 yearly would add up to between 15-20% of my salary for that year. If I just showed my group certificate vs pay slips or if I had my bonus pay slips, what do you think would be counted?

Would they see this as regular?
 
My last 4 bonuses paid 1/2 yearly would add up to between 15-20% of my salary for that year. If I just showed my group certificate vs pay slips or if I had my bonus pay slips, what do you think would be counted?

It doesn't get much better that that. :)

Tax returns are usually used to verify bonuses, group certificates work well too.
 
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