One of the many advantages of using a mortgage broker is that it allows you to identify the lenders that have the greatest borrowing power based on your particular circumstances.

This is particularly important when looking at income that is received that is not part of a base salary such as overtime, dividends and commissions and allowances where the treatment can vary incredibly between lenders as can the amount that be borrowed.

The differences in the borrowing capacity can be huge and this makes it even more important to get it right.

With commissions, some lenders take only 50% of the commissions into account, some recognise the full amounts received but only after 2 years, some average the commissions over a 2 year period, some look at commissions after 12 months and some look at commissions after 3 months so it is critical to make sure that you find the one that is best for you.

Overtime is similar with some lenders only using overtime for certain industries and others accepting it after varying qualifying periods. The inclusion of allowances can also depend on the industry that you work in and whether it is required as part of your employment. With commissions, overtime and allowances, the impact that it could have on the borrowing capacity can be enormous.

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