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How to calculate your annual base income
How to calculate your annual base income

Learn how to calculate your annual base income when applying for an Unloan home loan.

Updated over a week ago

A serviceability assessment evaluates your ability to manage loan repayments. Your income is an important factor in this process and affects your loan application outcome. At Unloan, we assess your serviceability by looking at a number of factors including your income, debts and expenses. Learn more about how income impacts your serviceability assessment.

Within the Unloan application experience, you will need to enter your annual income for all employment types. We acknowledge the varying nature of payment frequency, hence why we’ve recommended to calculate your income annually.

Please note that our application experience only allows for annualised income to be inputted.

Calculating Annual Income for PAYG Permanent Employees

  1. Identify the frequency to which you get paid (weekly, fortnightly, bimonthly, monthly).

  2. Multiply your regular earnings by:

    52 for your weekly pay

    26 for your fortnightly pay

    24 for your bimonthly pay

    12 for your monthly pay

This calculation provides an approximate annual income. The same method applies to allowances, overtime, commissions, and other income types.

After submitting your application, one of our Lending Specialists will confirm the income figures and the calculation method used.

What if my income varies?

If your income varies, you can provide statements, where we’ll calculate the average annual income using a:

  • Three-month average for permanent employees, and

  • Six-month average for casual or seasonal workers

Calculating Annual Income for PAYG Casual Employment

For casual or seasonal workers with fluctuating hours and additional loadings or allowances, please provide us a payslip that shows at least six months of Year-To-Date (YTD) income.

If your payslip shows less than six months of Year-To-Date (YTD) income, we’ll need to adopt the bank statement verification method listed above.

Self-Employed Individuals

If you are a sole trader or Partnership entity, you can enter the most recent years NET income from your personal tax return.

If you are a company structure you can enter your salary or wages from the company and allowances from your most recent personal tax return.

If you are unsure one of our Lending Specialists will verify the accuracy of your declared income when reviewing your application.

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